Fall 2018 Newsletter - Stock Option Counsel®

Hello Startup Community!

Here's the big news in the world of startup equity.

Leaked Compensation Data for Startup Executives from Andreessen Horowitz.Business Insider has published a database of startup executive compensation data leaked from Andreessen Horowitz. It was sourced from executive search firms and is searchable by fundraising stage. This data may be valuable to startup executives negotiating their compensation and interesting to anyone curious to know how much executives in the startup world earn in cash and equity.

How to Use the Data. The data reveals that the level defined for a role can dramatically affect the compensation offer. For example, the difference between the compensation for a CMO and a VP of Marketing at a Series A company would be significant in both cash and equity. In counseling individuals on their compensation negotiations, I see the most significant increases in cash and equity from successful re-leveling arguments.  Read more on my blog about how to use leveling to negotiate the right startup offer or contact me for information on my services.

Pay Gap for Startup Equity. I was recently interviewed by Bloomberg for an article on the gender pay gap for startup equity. They featured a study by Carta which found that women "make up 35 percent of equity-holding employees, but hold only 20 percent of the employee equity," and, further, that women make up "13 percent of founders but hold 6 percent of founder equity." I noted that one reason for the gap may be a lack of willingness to push for information necessary to evaluate a startup equity offer: "Equity is information asymmetry squared. You have to have the confidence to put the responsibility on the company to give you enough information."

Closing the Information Gap. It's up to individuals to educate themselves on equity and negotiate for the right number of shares to balance the risk of joining a startup. The purpose of my practice is to be available to those who need guidance in this process. See my website for more information.

Stock Option Counsel, P.C. - Legal Services for Individuals. Thank you for your enthusiasm for my practice and for the Stock Option Counsel Blog! I will continue to send quarterly updates on important topics in the market for startup equity for individual founders, executives and employees. Please keep in touch. 

Best,

Mary

Mary Russell | Attorney and Founder
Stock Option Counsel, P.C. | Legal Services for Individuals
(650) 326-3412 | mary@stockoptioncounsel.com