Equity for CFO - Sponsor owned OpCo
Hey all, I’ve been having discussions with a prominent global sponsor on an opportunity to be the CFO of one of their opCos. We have not discussed compensation yet but I did give them my current numbers and it was aligned with what they were expecting.
Anyone have an idea of what sponsors typically provide for equity stake in business? Additionally, this is an opportunity in Asia. I know these numbers vary widely and are pretty wide given regional differences but if anyone has % of what they may have seen, either in Asia, US, or EU that would be extremely helpful.
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I would think as much to incentivize you to work hard and be happy and add value while still being able to generate good returns for their investors. Good luck
What is wrong with you bro? I’ve seen you give several, worthless, limp dick responses just like this. If you have nothing to add, just don’t leave a comment, yo.
I have no clue what this would look like in Asia but from my experience in LMM & US/Europe , CFO's tend to get 1-2pts of options. This is assuming there is a 10% pool. We always have some wiggle room on our side as sponsor so I'd suggest negotiating a bit on this point. It comes down to how badly we need to fill the position and how capable we think the potential hire will be. Nobody will lose a top tier candidate for .1% option differential.
This is a great data, thanks for the response. In your experience on the sponsor side, if you are bringing on a banker that has a bunch of RSUs do you ever pay this out to the CFO candidate on the front end?
We haven't done that before but candidates have negotiated sign on bonuses so it's somewhat similar. It can't hurt to let them know you're "leaving significant RSU's on the table" so they can consider that when thinking about total comp package. They may say that the options are compensation for that piece but you'll never know unless you ask.
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