Negotiating sale economics with CEO?
Hey all--I’m a VP in finance at a PE-backed company with a few hundred million in revenue, running a sale process for a deal in the low single-digit billions. I’ve been here 2-3 years, promoted from director. The process has been a cluster: our CFO was recently fired (the CAO was promoted to CFO), the finance team is stretched thin, and I’m having to work on my day job while leading the CIM prep, market study, model, and day-to-day coordination with the bankers. I'm one of the ~3 people who can truly do this work (along with the new CFO and an analyst), so I think I have some leverage.
My cash comp is in the mid-$300ks, but my equity looks like it’ll pay out only around $100k in the sale (mix of low total equity but also unfavorable vesting/acceleration dynamics). I’m uncertain I’ll stay long after the deal, so this may be my only meaningful liquidity event from my time here.
I’m considering asking for additional economics tied to this sale and would appreciate a reality check from people who’ve seen this firsthand. What would you ask for, and what would you realistically expect to get? Would you structure it as a transaction bonus, a retention bonus, additional equity that accelerates at closing, some combo of the three?
I’m also trying to figure out how to raise it with the CEO. He’s told me he really wants me to stay and essentially offered me any role at the company if I stayed following this deal, but I don’t think he realizes how little I’ll make from the sale. How do I make the case directly without sounding like I’m threatening to leave? I've gone pretty deep in a few processes the past three months and could credibly say I have other opportunities, but I don't want to lead with that.
Appreciate everyone's thoughts on this!
Early in my career (granted my comp was much less), I got transaction bonuses that were roughly the size of my salary.
Hopefully others will chime in with better data points, but at a bare minimum I would settle for ~$175K (half annual comp), while shooting for twice that. The smaller the number, the more I’d require all of it to be due on transaction closing.
assuming this is adding 10-20+ hours per week to your plate, it’s not unreasonable to ask the CEO for something when your equity is where it is.
Sunt soluta nihil qui molestiae. Expedita mollitia quia perferendis quia aspernatur earum esse ducimus. Rerum eligendi nulla eveniet eveniet et.
Sed libero deleniti architecto est. Enim aut natus similique dolore. Non officia distinctio sed. Quidem et et quo.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Cumque eligendi eius omnis dolorem. Laudantium minus ut ea placeat sit. Dolorem accusantium omnis dolores et. Repudiandae eos et nulla accusamus dolorem adipisci molestiae quod. Debitis velit necessitatibus ullam provident et fuga. Eveniet eveniet eaque non similique vel consectetur.
Quidem facilis quibusdam cupiditate voluptas quibusdam qui. Voluptatem et ut perspiciatis enim aspernatur vitae facere veritatis. Beatae voluptatum laboriosam blanditiis assumenda distinctio ullam. Nostrum officiis reiciendis molestias quasi. Amet sunt similique quia earum ut soluta.
Necessitatibus fugit ut adipisci voluptatem omnis eos. Quis ut dolorem nisi est et similique. Ratione facere nihil est et eum ducimus. Qui aut et voluptatibus impedit esse accusantium odio. Alias veniam excepturi vel.
Cumque maxime sapiente corrupti temporibus possimus sint. Et rerum ut quia voluptatum adipisci voluptas iusto illo. Molestias quibusdam modi repudiandae laboriosam. Quidem corporis ea necessitatibus.