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[EP.29] How to Negotiate Equity Compensation Without Getting Fooled with Scott Leese
How to Negotiate Equity Compensation Without Getting Fooled with Scott Leese
Is base salary king?
Or does equity reign supreme?
After all, nobody wants to sign a contract just to realize a few months later that they could have gotten a better deal!
The million dollar question is, is it really worth sacrificing your salary today for a potential payout in the future?
And what should sales reps (especially those just starting out) know about negotiating stock options in their contracts?
In today’s episode, the Tony Stark of SaaS sales aka Scott Leese talks about the nuances of stock options and equity, contract red flags, what he learned from his own negotiation failures and more.
- In most cases, base salary trumps stock options. Your salary is tangible money you can spend, grow and turn into more money; stock options are hypothetical.
- Make sure you understand the specifics of your situation. For example, if you’re an account executive with a thousand shares, you will have to pay to exercise those when a liquidity event occurs. Meaning, you need that upfront cash or you lose everything. It’s important to do your research to understand what’s realistic for you at this stage of your career.
- Ask questions about your contract and compensation using a neutral tone and non-confrontational language. Try “Can you help me understand this?” instead of “Why am I only getting X shares?” The key is to maintain positive relationships when asking tricky questions.
- “This is all a risk, this is all a gamble [and] it keeps your eyes open to the game being rigged. Who really is going to make the money here? Even if you're a VP, the disparity between a VP of sales and a co-founder is so massive, right? I've gone to startups before and it's the co-founder, a technical co-founder, a of couple engineers...I'm then hired as the VP of sales. I sell this sh*t for the first time. I start hiring people. I build it, grow it. I get 1% and you probably have 30%. Are you trying to tell me that you are 30 times more valuable than that VP of sales who made this f*cking engine go? I will die on that hill. That is not equitable or fair at all.” – Scott Leese (23:15)
Ravi Rajani
Scott Leese
Head over to www.insightly.com/influential to learn more about how you can build customer relationships that last a lifetime through a CRM that aligns your teams, elevates the customer experience and drives sales growth. Your free 14-day trial awaits you!
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By Ravi Rajani
5
1818 ratings
How to Negotiate Equity Compensation Without Getting Fooled with Scott Leese
Is base salary king?
Or does equity reign supreme?
After all, nobody wants to sign a contract just to realize a few months later that they could have gotten a better deal!
The million dollar question is, is it really worth sacrificing your salary today for a potential payout in the future?
And what should sales reps (especially those just starting out) know about negotiating stock options in their contracts?
In today’s episode, the Tony Stark of SaaS sales aka Scott Leese talks about the nuances of stock options and equity, contract red flags, what he learned from his own negotiation failures and more.
- In most cases, base salary trumps stock options. Your salary is tangible money you can spend, grow and turn into more money; stock options are hypothetical.
- Make sure you understand the specifics of your situation. For example, if you’re an account executive with a thousand shares, you will have to pay to exercise those when a liquidity event occurs. Meaning, you need that upfront cash or you lose everything. It’s important to do your research to understand what’s realistic for you at this stage of your career.
- Ask questions about your contract and compensation using a neutral tone and non-confrontational language. Try “Can you help me understand this?” instead of “Why am I only getting X shares?” The key is to maintain positive relationships when asking tricky questions.
- “This is all a risk, this is all a gamble [and] it keeps your eyes open to the game being rigged. Who really is going to make the money here? Even if you're a VP, the disparity between a VP of sales and a co-founder is so massive, right? I've gone to startups before and it's the co-founder, a technical co-founder, a of couple engineers...I'm then hired as the VP of sales. I sell this sh*t for the first time. I start hiring people. I build it, grow it. I get 1% and you probably have 30%. Are you trying to tell me that you are 30 times more valuable than that VP of sales who made this f*cking engine go? I will die on that hill. That is not equitable or fair at all.” – Scott Leese (23:15)
Ravi Rajani
Scott Leese
Head over to www.insightly.com/influential to learn more about how you can build customer relationships that last a lifetime through a CRM that aligns your teams, elevates the customer experience and drives sales growth. Your free 14-day trial awaits you!