Compensation

Where Can I Find Information on Starting Salaries for a SaaS Startup?

Q: Where can I get some good starting salary information for a SaaS startup?  I need the information for CEO, CFO, CIO, CINO, Director of Sales. How much should the starting salaries vary for a startup with $5 million vs $10 million gross revenue? A (Brad):  First of all, you can find a great deal of…

Warrants In A Deal With An Advisor

Question: I am a startup about to receive a convertible loan investment. My friend has been advising me on an adhoc basis re. the financials on a barter basis with me. Now he’d like to formalise his agreement with the company. He has made his money as an entrepreneur and now travels alot but will…

Participate in the 2009 Startup Executive Compensation Survey

Furqan Nazeeri put up a post titled 2009 Startup Executive Compensation Survey Opens.  It in he points to a compensation study produced by J. Robert Scott, Ernst & Young, and WilmerHale in collaboration with Dr. Noam Wasserman, Professor at the Harvard Business School. CompStudy covers more than 25,000 executives at 5,000 companies and is the…

Healthy Ways to Tighten the Corporate Belt

Our friend Amy Hartman, who recently started her own law firm specializing in employment matters wrote a great piece called "Feel the Burn." It’s a very informative, yet easy to read piece on strategies for cutting your company’s burn rate during these challenging times. Most of her advice is with her employment law hat on,…

Compensation In A Very Early State Company – Follow Up Question

(Brad) In response to the post Compensation In A Very Early State Company I got the following question: Q: If comp is at say 50% with 2x equity vesting over a standard term, then in 6 months a series A is completed and there’s more comfortable level of cash in the bank, salary can be renegotiated…

What Kind of Benefits Can I Expect Working at a Startup?

Q:  What kind of benefits do start-ups typically offer? I don’t mean salary or equity: about which you already posted a lot of information. I am talking about health and life insurance, disability insurance – all of the typical benefits one receives when working for a large and established business. Do you recommend a particular…

What Are Typical Employment Contract Terms and Severance Benefits for a Startup?

Q:  I have read the your article on typical compensation for senior management of venture backed companies.  There was no mention of severance and length of contract terms. Can you opine? A: (Jason)  Most everyone in the startup world is an at-will employee and does not have an employment contract.  For those of you unfamiliar,…

Compensation In A Very Early Stage Company

Q: What should my compensation be?  I’m going to be the first full-time employee of a new startup.  As it is so early stage, it is hard to say what the title is, but the role is certainly similar to a CMO or VP BizDev type person.  The company just raised around $500k in an…

How Much Equity Should an Early Stage COO/CFO Get?

Q: We are a virtual company that will operate very lean. I am hiring a COO/CFO at the moment, and am wondering what share grant would be appropriate. I have seen CEOs recruited into startups receive something like 5%. Are there rules of thumb? A (Brad): We’ve got plenty of posts around this general topic…

How Do You Negotiate a Carve Out With Investors?

Q:   We are in the midst of negotiating a carve out with an investor on the East Coast.  Two stumbling blocks have occurred.  The first issue is what is an appropriate option pool size and does it vary from East to West coasts?  The investor tends to believe that there are a significant differences in…