Real Offer Example

Staff Engineer at Series B Startup

Actual offer breakdown: $220,000 base salary plus 40,000 stock options (0.04% ownership). See total compensation and potential equity value.

📋 Offer Details

Role Staff Software Engineer
Company Stage Series B
Base Salary $220,000/year
Equity Grant 40,000 options
Strike Price $4.00/share
Current 409A $8.00/share
Ownership % ~0.04%
Location New York, NY

📊 Total Compensation Analysis

Equity-to-Salary Ratio at Reasonable Exit
0.7×
At a $16/share exit in 5 years, your equity is worth $160,000 before taxes.
Below Market Equity Higher salary compensates

Breakdown:

  • Annual base salary: $220,000 (strong for Series B, near big-tech levels)
  • Current option spread: $160,000 (40,000 × ($8 - $4)) — paper value today
  • 5-year exit value (20% growth/year, 25% dilution): ~$160,000 before taxes
  • Total 5-year compensation: $1,260,000 ($1.1M salary + $160K equity)

🎯 Exit Scenario Projections

Exit Outcome Share Price Equity Value Total 5-Year Comp
Modest exit $12/share $80,000 $1,180,000
Reasonable exit $16/share $160,000 $1,260,000
Strong exit $25/share $280,000 $1,380,000

*Assumes 20% annual growth in 409A, 25% dilution from future rounds, 5-year horizon.

🔍 Market Context & Negotiation Tips

How this compares:

  • Salary ($220K) is solid for Series B Staff Engineer
  • 0.04% equity is on the low end for Staff level (typical: 0.02%–0.15%)
  • The equity-to-salary ratio of 0.7× indicates cash-focused compensation
  • Series B has lower dilution risk than Seed/ Series A, but also lower multiple upside

If you get this offer, consider negotiating:

  • Push for more equity: "Given the Staff-level scope and impact, could we increase the option grant to ~60,000 shares (0.06%)? That would better align with market benchmarks."
  • Request performance equity: "I'd like additional equity tied to specific milestones — leading critical projects or mentoring the team."
  • Sign-on bonus: "Can we add a $20K sign-on bonus? That would make the offer more competitive without long-term cost."

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