How to evaluate ESOP offer at salary negotiation?
2 by stefanDM | 0 comments on Hacker News.
I've been offered a position in an early stage startup with a substantial percentage of my compensation in stock options. Aside to whether going for esop or cash is a good/bad idea, I'm having issues evaluating the offer and understanding its fairness. I read about strike price, vesting etc. but I'm having issue understanding the monetary value of the stock option at present. Let's say that the average salary for my role is 90k/year, and I get offered 60k in cash and the rest in esops. How do I measure the current value of the esop I'm offered (to make up for the remaining 30k) and understand if the amount of esop offered is fair? Thanks!