Consider two job offers as follows:
a) $100K cash base, with $300K guaranteed (e.g., risk-free) cash bonus at year end (provided you work there year-end)
b) $100K cash base with $X equity compensation in risky startup equity. $X is a valuation based on a recent fundraising round that is about to close. Note that you are not able to value the equity independently (you can only assume it is fairly valued) and it is not liquid. Moreover, you cannot be certain whether you are subject to equity dilution down the line.
How much does $X need to be in order for you to be indifferent between the job offers given the risk, illiquidity and uncertainty associated with offer B? Assume that both jobs are equally enjoyable and that the only distinction is compensation structure.
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