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How to Think About Your Startup Compensation Package

10 June 2019

Equity is a critical part of your compensation, but it’s also the most complex. Here’s how you should approach equity decisions and a unique tool to help you understand the value of your comp package.

Compensation is about more than numbers and can be an emotional topic because it also touches on notions of fairness and self-worth. Unfortunately, these emotions can produce bad decisions. At RevelOne, we see hundreds of offers a year and talk to candidates as they wrestle with major career decisions.

We’ve seen marketers choose jobs based on the last few thousand dollars when they might end up burning years in the wrong role, miss out on a huge equity win, or lose the opportunity to develop key skills. And given the evidence of the gender pay gap and other signs of inequality, having a thoughtful and data-driven approach to assessing compensation is more important than ever.  

Below are some important factors to consider when evaluating an offer. We also provide a tool that can help you understand and calculate the value of your startup compensation package across a range of scenarios.

Important Factors to Consider

  1.  Think deeply about your personal situation and risk profile.
  1. Negotiating for more equity sends a positive message to hiring companies because it shows you are aligned with their performance and mission.  
  2. Similarly, shifting some base salary to a performance-based bonus signals confidence in your abilities.

What Is Your Equity Worth?

Equity is a critical part of your compensation, but it is also highly complex and often not well understood. Just knowing the number of options you have isn’t enough. You need to know:

Stock Options Value Calculator

RevelOne Stock & Options Calculator

To help you understand your equity value, we created a downloadable Excel sheet that guides you through the key variables and calculates the value of your options. 

It’s a great tool to use before you accept an offer and be sure to keep it updated after you join a company.

 

Download Options Calculator

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