Fyi here's the story of how I landed my current job.
WSO - Next week I'm going into negotiations with my bosses regarding a change in my contract as a result of the merger. Since we will now technically be 'owned' and working for the listed entity, I'm guessing my 10% profit share is out the window. My boss said "Whatever we decide together, we will make sure that you're better off than with the old contract".
Now, I really like the profit share idea as an incentive, and I also like the stock option idea because that will be what makes me a LOT of money. I know that I will get the stock option at NAV of 10 cents per share, and most definitely be able to sell fairly soonish at at least 3 (currency) per share. However, I have no idea how many shares I'll be allowed to purchase. Depending on that I could make millions or thousands, and I do not want to make thousands because then I'm no better off than with the profit share, seeing as with the profit share I would be able to make millions from just the sale of our current portfolio, and then continue to make good money (no max cap) from bonus/sharing on future investments.
My current base salary is alright, not amazing. But they said that it will be increased significantly together with promotions with time and quite rapidly. My question now: How do I go about this? What is the best solution for me to bring into negotiations? The good thing is that they do care about what I think works best for me, so that's why they suggested the meeting to see what I want.
What I do want is for my profit to be in line with the company's profit for incentive. And not just as a one time stock option profit, because after that I would just have a normal salary ... you know? It's about cash flow, not winning the lottery. Moreover, I'd rather not just have a bonus structure of stock options + up to 50% of salary in bonus. Because then I am actually worse off than better off.
How must I structure this for maximum gain? Assume all are mutually exclusive in terms of amounts. Allocations will be made.
Btw, I know I'm being greedy but it's a case of being promised riches and them potentially being taken away, versus not being promised anything. Principle of "It's worse to have money and lose it than never have had it at all".
Thanks !
I didn't read your entire post, but I have 1 word of caution - understand how they value stock options before you figure out what you want. Companies can get pretty strange with some of these things.
I am no expert, but between myself and a few buddies (all different size/types of companies) each company we work for seems to have a different way of valuing stock options. We'll take out vesting periods for now (which I'd be concerned with if I were you) and do a VERY hypothetical example:
Say you're getting 1,000 options with a strike of $1 and current share price is $5. Some companies would value this at $4k, which seems appropriate given that's what your pre-tax benefit would be if you sold today. However, another company might value these options at $15k. I still can't figure out how, but when my buddy asked HR they talked about growth, future valuation, dividends, etc..... Pure bullshit.
If possible, I'd ask about this before determining what you want.
Either way, congrats.
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