COMPANY OFFERS SHARES TO EMPLOYEES BUT LACKS COMPARED TO AN ACTUAL INCREMENT

COMPANY OFFERS SHARES TO EMPLOYEES BUT LACKS COMPARED TO AN ACTUAL INCREMENT

Singapore Uncensored·2024-02-28 12:04

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Hi all,

Firstly, I apologise if this is not the place to be posting this question.

So, I’ve been working at a mature start-up for about a year now. I joined as part of a growth cycle in which about 100 people were hired. My role is compensated well, mostly because I work in technology in a role with a lot of responsibility.

I asked when I joined if I could have shares and they said it was in the works and coming to everyone soon. I didn’t press too much as I was already receiving a big bump in salary.

Recently, all existing employees have been offered growth shares. The company has made a big deal about not wanting it to be about a % stake in the business or deciding based on salary. Which, if I’m being cynical, seems like it only stands to benefit them by making it harder to understand what you’re getting.

Does anyone have experience receiving growth shares? Typically, how many shares would you expect for a company at this stage? The only figure I’ve been told is based on the company’s previous funding round. They were valued at ~$30m. If the company sold for $1B (I repeat IF), I would be looking at a $90,000 return on the sold shares. Am I being unreasonable to think this isn’t actually a very meaningful stake given how few startups actually reach that size?

Purely on numbers, I’ve worked the offer to be ~3.5% of my salary as Growth shares, vested over a 5-year period. Equating to ~0.0008% stakeholder in the business.

Sorry for the ramble, Im planning to speak to them about it, but ideally I’d like a number in my head and some evidence of what other companies at this stage have offered in the past.

I rather get straight cash increments.

Employment Business