Ask HN: is this a fair offer?

#1

Post by cluelessdude » Wed, Jun 08, 2011, 7:03 PM UTC

I received an offer and wanted to get the general public's opinion regarding it.

Background: - Startup with 0 lines of code, 2 founders - Raised stealth funding of 1-4 million USD - Coding will start as soon as 2 devs are recruited - Founders are taking a regular salary pretty much, maybe a bit less than average (from what I gather) - The employee stock pool is 10%

Given the above, how fair is it that I was given an offer of 50% of my current pay for ~0.6-0.9% in options?

Re: Ask HN: is this a fair offer?

#2

Post by DamnYuppie » Wed, Jun 08, 2011, 7:08 PM UTC

Unless you are currently making really good money I wouldn't leave for 1/2 of what you are making and less then 1% in equity.

Re: Ask HN: is this a fair offer?

#3

Post by maxdemarzi » Wed, Jun 08, 2011, 7:09 PM UTC

Is your current pay average, or above average market rates?

How much did they actually raise? 1-4 million is a wide range for a 4 man operation. Even at 1M, I don't see why they would only offer 50%, specially if the founders are taking a regular salary.

Re: Ask HN: is this a fair offer?

#4

Post by bhousel » Wed, Jun 08, 2011, 7:13 PM UTC

Depends, how good a programmer are you?

Re: Ask HN: is this a fair offer?

#5

Post by jbail » Wed, Jun 08, 2011, 7:15 PM UTC

50% less seems low. Everything is a negotiation. Remember this. If you think you're worth more (and you obviously are since you make 2x of that offer right now), come back with a counter offer that's 50% more than what you currently make. If they say they can't do that, then you can always counter back and push for more options in exchange for less cash.

Re: Ask HN: is this a fair offer?

#6

Post by antoinevg » Wed, Jun 08, 2011, 7:22 PM UTC

Going by what you've told us, I don't think "how fair is it" is the question you should be asking yourself!

Re: Ask HN: is this a fair offer?

#7

Post by cluelessdude » Wed, Jun 08, 2011, 7:31 PM UTC

maxdemarzi wrote: post #3

Is your current pay average, or above average market rates? How much did they actually raise? 1-4 million is a wide range for a 4 man operation. Even at 1M, I don't see why they would only offer 50%, specially if the founders are taking a regular salary.

My current pay is probably 10-15% above average. Funding is more to the 2-4 range. My main concern is whether the equity is within the "average" for first developer on deck in a startup with VC money

Re: Ask HN: is this a fair offer?

#8

Post by maxdemarzi » Wed, Jun 08, 2011, 7:51 PM UTC

cluelessdude wrote: post #7

maxdemarzi wrote: post #3

Is your current pay average, or above average market rates? How much did they actually raise? 1-4 million is a wide range for a 4 man operation. Even at 1M, I don't see why they would only offer 50%, specially if the founders are taking a regular salary.

My current pay is probably 10-15% above average. Funding is more to the 2-4 range. My main concern is whether the equity is within the "average" for first developer on deck in a startup with VC money

At market salaries average for a lead engineer is 0.5% to 1% at the Series A point. Half-salary would demand more equity.

http://venturehacks.com/articles/option-pool-shuffle#market

Re: Ask HN: is this a fair offer?

#9

Post by jcol » Wed, Jun 08, 2011, 7:54 PM UTC

cluelessdude wrote: post #7

maxdemarzi wrote: post #3

Is your current pay average, or above average market rates? How much did they actually raise? 1-4 million is a wide range for a 4 man operation. Even at 1M, I don't see why they would only offer 50%, specially if the founders are taking a regular salary.

My current pay is probably 10-15% above average. Funding is more to the 2-4 range. My main concern is whether the equity is within the "average" for first developer on deck in a startup with VC money

You're the first developer on board. Get more equity, 2% would be good if they are giving you half-salary. 1% would be good if they are willing to do full salary.

Walking away from lowball offers makes you worth more in the long run.

Re: Ask HN: is this a fair offer?

#10

Post by cluelessdude » Wed, Jun 08, 2011, 8:00 PM UTC

maxdemarzi wrote: post #8

cluelessdude wrote: post #7

Earlier quoted context omitted.

My current pay is probably 10-15% above average. Funding is more to the 2-4 range. My main concern is whether the equity is within the "average" for first developer on deck in a startup with VC money

At market salaries average for a lead engineer is 0.5% to 1% at the Series A point. Half-salary would demand more equity. http://venturehacks.com/articles/option-pool-shuffle#market

thanks for the link. that table is 4 years old, is it still the average?