Does anyone have any average PE/VC industry statistics of the equity grant to
Average Equity Grant to CFO's at PE/VC Portfolio Company's
Answers
1-2% is most common for series A companies. A few years back I was given some very detailed info from a VC that showed, for non-founders, the average grant was 1.25%. I don't know what their source was for the data, but every VC I have ever worked with has data from some comp firm along these lines. 5% would be for very early stage rock star additions. Almost unheard of unless they are simply core to the whole company. Besides that, 1-2%
Having worked in several equity-backed companies, the answer falls into 2 categories: 1) Grants of stock in the form of options or SARs that vest over time and 2) purchase of stock that have performance-based vesting privileges. In the first case, the average range is between 1% and 2% for the CFO, double that for the CEO. In the second case you are asked to invest along with the equity partners and share their
I have found the grants to be between 1 to 1.5% depending on the stage of the company. And the CEO is generally 5% plus
Are these grants straight equity grants or options that vest? I have been in situations where I have seen typically 1-2% and an additional amount being granted every year based on milestones being achieved. But the annual grant is pretty small - less than 1%.
In Asia, where I am a consulting CFO, I have noticed that this is something that is pretty difficult, and the concept is just taking root now.
Definitely option grants with a vesting schedule. If you are granting actual shares then the grant structure is very different, as are the tax ramifications for the recipient.
I can confirm the other posts here.
Over the past five years have worked for three start up companies backed by PE/VC firms, I joined after the A or just after the B round and have received 1-1.5% of the company, vesting over 3-4 years. The PE/VC firms included Kleiner Perkins; DE Shaw; Kholsa Ventures; American Capital and other first tier firms,so I am confident these are competitive levels.