The Not So Old Girls' Club: Women in Tech Building Their Own Professional Networks
Working with a great network can make career success much easier (and perhaps simply possible) to achieve. Without a built-in old-boys-club network, smart women in tech are thoughtfully constructing their own. Photo by olia danilevich.
Attorney Mary Russell counsels individuals on startup equity, including:
You are welcome to contact her at (650) 326-3412 or at info@stockoptioncounsel.com.
Working with a great network can make career success much easier (and perhaps simply possible) to achieve.
When women talk about advancing their careers, they often talk about their lack of an “old boys’ club” to move them forward. In particular, women in the tech industry are uniquely aware of their need for a network. Without a built-in network, smart women in tech are thoughtfully constructing their own.
Mentors Far and Wide
The first step in building a network is recognizing that it takes a community to build a career and then committing to not go it alone. After they make this commitment, networkers find that informal mentors start to appear from far and wide to guide their paths.
According to Patricia K. Gillette, Esq., a partner in the employment law group at Orrick in San Francisco, “A mentor is someone, and I think it’s a variety of people in your life, who are going to help you navigate certain aspects of your life, whether it's your personal life, whether it's your work life, whether it's how you exercise, whether it's what you do for fun.”
Mentors are people you feel comfortable with. As Pat notes, “They're people who know you and are going to respond to you in a caring way and thoughtful way.
Diversity is important to get great perspectives. “They do not have to look like you,” Pat says. “They do not have to be the same gender or race. They don't have to be you.”
There will be many mentors in a well-connected life, but mentors are only one piece of the network necessary for advancing a career.
Sponsors within Your Organization
A sponsor is necessary in order to advance in an organization. A sponsor is someone in a very high position of leadership who advocates on one’s behalf within the organization.
A sponsor is going to “advocate for ways for you to increase your power within the organization either on the work side or on the leadership side on the economic side on the business building side,” Pat says. “You have to find a sponsor and you have to make sure you click with that sponsor and that that sponsor is willing to advocate for you. That's the way you advance within firms.”
A sponsor is completely different from a mentor. According to Pat, a sponsor is not someone to ask, “‘Where shall I stand in court? Shall I file this brief early?’ That's not what this person is.” In fact, Pat says, “a sponsor is someone who you may not like so much. A sponsor is somebody who is going to take you and say, 'The next thing you should do within the organization if you want to assume a position of power is X. And I'm going to talk to my friends within the organization to say that they ought to consider you.' That's very different from a mentor.”
What a sponsor offers is not based on altruism. To have this relationship, “you not only have to be ready, willing and able to ask, but you also have to be willing to offer something in return,” Pat says. “Usually what you offer in return is support for that person, either by being exactly as you said you were going to be - meaning you're really highly qualified and anxious and willing to accept positions of power within the organization. And also by making sure that you support that person in whatever causes he or she may have.”
See Pat’s presentation, Elimination of Bias - Women in the Law: Flying the Coop on the Wings of Economic & Institution Power, available from Lexvid: Continuing Professional Education.
Professionals
Finally, professionals provide services to help guide a career and financial path.
A great network of professionals might include:
Recruiters and hiring managers for networking and job placement
Financial planners for managing wealth, making important financial decisions, and considering career moves from a financial perspective
Attorneys for negotiation of employment contracts, stock compensation, and intellectual property matters
Accountants for tax planning and estate planning
Career and leadership coaches for individual contributors who want to move to the management level or move from there to C-level roles, or to help with participation in and running meetings, finding places to speak and be on panels or interact with senior colleagues and peers
Public speaking coach for women wishing to improve their personal brand by speaking at conferences or even presentations in the office
Negotiation coach for women wishing to advocate on their own behalf more effectively, be that when negotiating a compensation package for a new job, or for advancement in a current job and
Professionals on the person side of life, such as healthcare professionals, who in turn can improve effectiveness at work.
Opportunities for the Future
The essence of the “old boys’ club” is that their networks are built-in and are established without having to learn to create them. They meet the right contacts in their personal networks and activities. This list of network roles is meant to be a starting point for women to start to think about who is out there that would make up a community for a successful career.
As women learn the necessity of community in building a career, they may start to overcome their aversion to seeking out a network and becoming successful. Since everyone needs this, it's not wrong or overly ambitious to pursue it. As Pat notes, "[W]e see ambition as being a dirty word. There's some of us who say, 'I don't want to be ambitious, I don't want to look like I'm trying to go for everything, I don't want to look like I'm trying to get everything for myself.' That's okay, because it's not for yourself. Ultimately it's for the team, it's for your family, for your personal satisfaction."
Adding to the List
Please contact me with any suggestions of other roles that might be added to the list or descriptions of how these types of people can be helpful. I would be happy to add them to the list!
Attorney Mary Russell counsels individuals on startup equity, including:
You are welcome to contact her at (650) 326-3412 or at info@stockoptioncounsel.com.
Negotiating Equity @ a Startup – Stock Option Counsel Tips
Attorney Mary Russell counsels individuals on startup equity, including:
You are welcome to contact her at (650) 326-3412 or at info@stockoptioncounsel.com.
Negotiating an offer from a startup? Here's some tips.
1. Know How Much Equity You Want
For employees early in their careers, the only negotiable terms for equity are the number of shares of stock and, possibly, the vesting schedule. The company will already have defined the form in which you will earn those shares, such as stock options, restricted stock units or restricted stock.
Your task in negotiating equity is to know how many shares would make the offer appealing to you or better than your other offers. If you don’t know what you want for equity, the company will be happy to tell you that you don’t want much.
Your desired number of shares should be the result of thoughtful consideration of the equity offer. There is no simple way to evaluate equity, but understanding the concepts and playing with the numbers should give you the power to decide how many shares you want.
One way to compare offers and evaluate equity is to find the current VC valuation of the preferred shares in the company. If a VC has recently paid $10 per share for the company’s stock, and you have been offered 10,000 shares, you can use $100,000 to compare to other offers. If another company has offered you 20,000 shares, and a VC has recently paid $5 for their shares, you could use those numbers to compare the offers. For more info on finding VC valuations, see: Startup Valuation Basics or contact Stock Option Counsel.
Remember that the purpose of this exercise is not to have a precise dollar value for the offer, but to answer these questions: How does this offer compare to other offers or my current position? What salary and number of shares at this company would make this a stable, sustainable relationship for me? In other words, will this keep me happy here for some time? If not, it is in nobody’s best interest to come to a deal on that package.
For more information on negotiating equity, see our video: Negotiate the Right Stock Option Offer or our blog with Boris Epstein of BINC Search: Negotiate the Right Job Offer.
2. Look for Tricky Legal Terms That Limit Your Shares' Value
There are some key legal terms that can diminish the value of your equity grant. Pay careful attention to these, as some are harsh enough that it makes sense to walk away from an equity offer.
If you receive your specific equity grant documents before you are hired, such as the Equity Incentive Plan or Stock Option Plan, you can ask an attorney to read them.
If you don’t have the documents, you will have to wait until after you are hired to study the terms. But you can ask some general questions during the negotiation to flush out the tricky terms. For example, will the company have any repurchase rights or forfeiture rights for vested shares? Does the equity plan limit the kinds of exit events in which I can participate? What happens to my equity if I leave the company?
3. Evaluate the Equity’s Potential
Evaluate the company to know how many shares would make the equity offer worth your time. You can start by asking the company some basic questions on their expectations for future growth and the exit timeline.
The higher your rank in the company and the stronger your emphasis on these matters, the more likely you are to speak to the CEO, CFO or someone else at the company who can answer these questions. If you want more resources to help you think like a startup investor, there are great online resources on valuation, dilution and exits for startups.
But don’t place too much weight on the company’s predictions of the equity’s potential value, especially if those values are based on an early-stage company’s Discounted Cash Flows (DCF). Even the experts know that the only thing early stage startups know about financial projections is that they are wrong.
Attorney Mary Russell counsels individuals on startup equity, including:
You are welcome to contact her at (650) 326-3412 or at info@stockoptioncounsel.com.
Skype Repurchase Rights = Vampire Capitalism
I agree that it is unethical as it goes against the expectation of employees as to how their contributions are valued. If they don't know about it before they choose the company, they are making a choice without an essential term of the deal.
And it goes against the most idealistic ethic of Silicon Valley – that capitalism should be used by groups to organize and cultivate their own creative efforts rather than as a tool of vampires.
But it is not illegal. And I've seen worse in my Stock Option Counsel practice (twice this month alone). Congratulations on paying attention.
Attorney Mary Russell counsels individuals on startup equity, including:
You are welcome to contact her at (650) 326-3412 or at info@stockoptioncounsel.com.
Quora Question:
What does it say about a company that has a Skype-like repurchase right in their stock option agreement? The company that I work for has a stock option agreement that has a Skype-like repurchase clause (See: Upgrading Skype and Silver Lake to Evil), basically allowing them to buy back exercise stocks at 1.5x FMV within 90days following the employee's end date/exercise date. I have never seen anything like this, is this to protect them/screw ex-employees? It basically mean my vested stocks can be easily bought back at 1.5x? Isn't it unethical?
Stock Option Counsel Answer:
I agree that it is unethical as it goes against the expectation of employees as to how their contributions are valued. If they don't know about it before they choose the company, they are making a choice without an essential term of the deal.
And it goes against the most idealistic ethic of Silicon Valley – that capitalism should be used by groups to organize and cultivate their own creative efforts rather than as a tool of vampires.
But it is not illegal. And I've seen worse in my Stock Option Counsel practice (twice this month alone). Congratulations on paying attention.
Attorney Mary Russell counsels individuals on startup equity, including:
You are welcome to contact her at (650) 326-3412 or at info@stockoptioncounsel.com.