Negotiating Equity After Years of Service at a Unicorn with Upcoming IPO

Introduction

Many professionals aim to align their compensation with the company's potential and value as they contribute to its success. If you are in a pivotal role such as head of technology at a unicorn company with plans for an Initial Public Offering (IPO), it's essential to understand how to negotiate equity and other incentives. This article delves into the nuances of such negotiations and offers practical advice for those in similar roles.

Understanding the Company's Perspective

Your position as a direct report to the CEO and head of technology grants you a unique and critical role. The significance of your contribution to the company's success, especially on the path to an IPO, cannot be overstated. Given the substantial financial benefits the CEO stands to gain, you can reasonably expect that they will also look to reward key executives like yourself for your continued loyalty and success.

Approaching the CEO

Given your rapport with the CEO, it's a good starting point to have an open conversation about your equity and other incentives. Here are some steps to consider:

Be Direct and Honest: Clearly state your needs and expectations without being overly demanding or unreasonable. Focus on Value: Emphasize your contributions and how they align with the company's goals. Provide a Timeline: Explain the duration of your service and the value you have brought to the company. Prepare Proposals: Be ready to offer potential solutions or alternatives that can be mutually beneficial.

Remember, the CEO may be in a strong position to negotiate, but they also have a vested interest in retaining key talent. If they are fair and reasonable, they will likely offer some form of compensation as a sign of appreciation for your efforts.

When Negotiation Fails

While direct communication is often the best approach, it's vital to consider your options if the CEO is not amenable to negotiation. Your actions could range from waiting for a subsequent equity grant to seeking external advice or even considering a change of employment.

The Role of External Experts

Some early mentors advise seeking legal and financial counsel before situations arise. If you feel that the initial equity negotiation was mishandled, it may be time to consult with experts who can provide personalized advice based on your specific circumstances.

Quora can be a useful resource for general information, but for detailed and tailored guidance, reaching out to experienced professionals is crucial. They can help you navigate the complexities of equity negotiations and ensure you receive fair compensation for your contributions.

Conclusion

As a head of technology or any other key role in a rapidly growing company with IPO plans, your equity and compensation should reflect your value and contributions. By approaching the CEO with openness and professionalism, you can increase the likelihood of a positive outcome.

Seeking expert advice is also a prudent step to ensure you make informed decisions that align with your career goals and financial needs.