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MenuHi,
I've hired and negotiated several top level execs at startups. On both sides, this is one of the trickiest negotiations that will have to be made at any stage of a company's life, since the value of the equity is highly uncertain.
This is tough to answer without knowing your background and without knowing how much the current company might be worth. As a rule of thumb a non-founder CEO joining an early stage startup (that has been running less than a year) would receive 7-10% equity. Other C-level execs would receive 1-5% equity that vests over time (usually 4 years).
I would adjust these numbers up somewhat if you have significant experience in the space or a track record of building and monetizing a brand.
I would adjust these numbers down somewhat if the company is generating significant revenue (>$1M) or can fairly valued (by a third party, such as a VC) at over USD $10M.
I would also adjust the numbers down if the company has received professional investment from a venture capital firm or a strategic partner. Also remember that salary and equity are both exchangeable and negotiable -- you may be able to get more equity for less salary and vice versa.
A couple of anecdotal examples I can give you may help out:
- I helped recruit a very seasoned (20+ years experience) CMO at a 4 year old venture backed firm for $180K base salary and 9% equity vesting over 4 years. This person was previously a CMO at a Fortune 500 company.
- A firm that I was involved in founding hired our Head of Business Development with 25+ years experience for $100K salary plus 2.5% equity.
- A personal friend of mine with 10+ years in the Sales and Marketing space just got hired (last week) as the Head of Sales & Marketing at a Series A venture backed Financial Technology firm for $100K salary and 1.5% equity.
Hope this helps -- I'd be happy to discuss further on a call to discuss your personal situation or answer any questions that you may have.
Vijay
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