PE Portco VP Equity

Based on previous WSO threads, here's what you need to know about your situation:

1. Compensation Range: Your offer of $200-400k OTE (On-Target Earnings) is within the typical range for a VP of M&A at a mid-market PE-backed portfolio company in major cities like NYC or SF.

2. RSU Expectations:

   • Growth Potential: RSUs (Restricted Stock Units) can vary significantly in value. If the company is high-growth, especially in sectors like SaaS, the RSUs could appreciate substantially over time. For example, some VP-level individuals from BB banks who moved to pre-IPO consumer companies saw their RSUs multiply significantly when the company grew 20x in 3.5 years, reaching well into the 7-figures.
   • Dilution Concerns: Given the presence of multiple C-suite executives, the equity pool might be diluted. However, as the first main VP hire, you might still negotiate a meaningful RSU package, especially if the company values your role in driving M&A activities.

3. Career Progression:

   • Variable Progression: Career progression in Corporate Development can be quite variable. It's advisable to review the LinkedIn profiles of the current team to gauge how quickly they have moved up within the company or if they have lateraled in from other firms.

4. Comparison with Current Role:

   • Banking vs. Corp Dev: While you might make less in the short term compared to banking, the potential upside with RSUs in a high-growth company could be substantial. It's important to weigh the immediate financial risk against the potential long-term gains.

5. Location and Cost of Living:

   • NYC/SF Considerations: The compensation offered should be evaluated in the context of the high cost of living in NYC or SF. Ensure that the RSU package and OTE are sufficient to maintain your desired lifestyle in these expensive cities.

In summary, while the exact RSU package details are pending, you should expect a potentially lucrative upside if the company performs well. Given the dilution concerns, negotiate assertively to secure a fair share of the equity. Additionally, consider the long-term growth potential and career progression opportunities in Corporate Development compared to your current role in lower-tier BB IB.

Sources: IB Associate with PE Offer (package question), Q&A: VP in Private Equity (Growth Equity + LBO)...Post-MBA...Formerly IB Analyst, Q&A: Corp Dev Professional at Large-Cap Tech Company, What is a "realistic" expectation on carried interest as part of comp package?, Leave PE for Corp Dev VP role?