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Anonymous President

Equity Compensation in start up for CFO/COO

Asked on Aug. 19, 2013

I am joining a startup company as CFO/COO. The company has raised some initial angel financing, but needs to raise additional funds before salary can be paid. Salary would be accrued, and I realize it may get nixed as a condition of additional financing. I am being offered equity in the company, however I am not sure what the current thinking on percent to be received. In the past I have received anywhere from 4-7%. Any thoughts are appeciated.

Answers

Regis Quirin Director of Finance • May 13, 2013

I believe you are in the correct range. I have used 5%.

Simon Westbrook CFO • May 13, 2013

Your accrued salary will likely be converted as a condition of future investment. Depending on where your accrued salary sits in relation to market rate, this could also affect where you are in the range you suggested.