To Be a Vice President at a Small Company or an Individual Contributor in a Large Company: Which Is Better for Your Career?

The question of whether it is better to take an unfilled role as Vice President (VP) at a small company or stay as an individual contributor (IC) in a large company is a highly personal one, influenced by a myriad of factors. The term “better for your career” is inherently subjective, and what is advantageous for one person might not be for another. The answer often hinges on personal aspirations, career goals, and an understanding of the trade-offs involved.

Better in Terms of What?

Before making a decision, it's crucial to be clear about your career aspirations and evaluate the options in light of those aspirations. Here are some dimensions to consider:

Immediate Compensation

Starting salaries and bonuses are often higher in VP roles due to the seniority and visibility of the position. However, they also come with higher responsibilities, stress levels, and potential work-life balance issues. IC roles in large companies, on the other hand, might offer more stable pay but less immediate recognition and leadership opportunities.

Future Earning Potential

Vice Presidents often have the potential to earn more in the long run through bonuses, stock options, and future promotions. However, the path to becoming a VP in a large company may be more competitive and take longer than the opportunity cost of opting for a senior position in a small company.

Stability/Low Risk

Small companies can be unpredictable and volatile. While this can be exciting and challenging, it also increases the risk factor in terms of job security. Large companies generally offer more stability due to their size and established culture. Vice President positions in small companies might come with less job security due to the company's financial or operational instability.

Flexibility

IC roles may offer more flexibility in terms of work hours and location. Working in a small company can be more demanding and demanding, with extended hours or frequent travel. However, the perk of a small startup is the possibility of a more dynamic environment and a sense of ownership.

Expected Working Hours

The VP role often means a higher workload and more responsibility, potentially leading to longer working hours. Conversely, IC roles might offer a more reasonable work-life balance, especially if the company has a culture that values work-life integration.

Family / Work Trade-offs

For individuals with family responsibilities, the stability and supportive work environment of a large company might outweigh the immediate benefits of a VP position in a small company. The flexible hours and work environment in a large company can be more accommodating to family needs.

Travel Requirements

VPs in small companies might find themselves traveling more frequently, depending on the company's geographical reach and the nature of their role. In a large company, travel requirements are generally less intense, and you might have more local assignments.

Location

The location of the company can significantly influence career satisfaction. Small companies might offer relocating opportunities, while large companies often have a broader network and more locations to choose from. Some individuals prefer the convenience of staying in one place, while others enjoy the excitement of change.

Workplace Culture

The culture of a company can have a profound impact on your career satisfaction. Small companies often have a more agile and entrepreneurial culture, while large companies typically have more bureaucratic and collaborative environments. Your preference for a culture will play a significant role in determining the best fit for you.

Area of Interest

Your specific area of interest and the industry you are passionate about will also influence your decision. Small companies can offer unique opportunities to explore niche markets and contribute to the growth of emerging industries. Large companies, on the other hand, often have well-established departments and are leaders in their respective industries.

Personal Experience and Insights

In my experience, and based on the narratives of many professionals I know, moving into unfilled VP roles at small businesses can be challenging. I was once approached by a recruiter for a senior role at a 600M division of a large multinational firm, yet the recruiters had concerns about my “small company” experience. Specifically, they felt that I lacked the “big company” experience needed for the role.

This experience highlighted the challenges that small company VPs face. Often, they find it difficult to leverage their experience in a small company to secure equivalent roles in large companies. Vice Presidents in small companies might not have the same level of recognition or the extensive network that larger companies offer. In other cases, even if one meets the requirements for Vice President positions in larger companies, one might not get a call due to a mismatch in expectations or a lack of understanding of the candidate's background.

For individuals looking to move into Vice President roles quickly and are content with a career in small companies, taking that position might be the best choice. Conversely, staying as an Individual Contributor (IC) in a large company and working your way up to VP roles might be a more realistic and sustainable route.