Pre-asset Portfolio Company Equity Comp
Any experience with what % equity (incentive shares) a VP of finance level should expect when joining a portfolio company that was just formed? This is in the energy space. Any experience would be helpful - particularly interested in hearing about associate at PE Fund -->> VP Finance at sponsor back portfolio company.
Probably going to be hard to find “market” comp for a position like this. My suggestion would be to think about what your comp would be at an established company that gives equity as part of an LTIP, and then run some calculations vs. your expectations at this new company and make sure you include appropriate upside based on the risk.
Thanks, the problem is that the incentive shares have no value until exit and are nearly impossible to value when a company is pre-assets. The only true way (IMO) to value them or get a feel for the upside is what % of the total pot they are willing to give up. I've had experience in the past where the founders kept 85% and reserved 15% for future employees....I would be the 5th or 6th or 7th employee and am in discussions ~1-5% range (per head-hunter)
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