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Equity Compensation in start up for CFO/COO

I am joining a startup company as CFO/COO. The company has raised some initial angel financing, but needs to raise additional funds before salary can be paid. Salary would be accrued, and I realize it may get nixed as a condition of additional financing. I am being offered equity in the company, however I am not sure what the current thinking on percent to be received. In the past I have received anywhere from 4-7%. Any thoughts are appeciated.

Answers

Topic Expert
Regis Quirin
Title: Director of Finance
Company: Gibney Anthony & Flaherty LLP
LinkedIn Profile
(Director of Finance, Gibney Anthony & Flaherty LLP) |

I believe you are in the correct range. I have used 5%.

Topic Expert
Simon Westbrook
Title: CFO
Company: Aargo Inc.
( CFO, Aargo Inc.) |

Your accrued salary will likely be converted as a condition of future investment. Depending on where your accrued salary sits in relation to market rate, this could also affect where you are in the range you suggested.

Topic Expert
Dana Price
Title: Vice President, M&A
Company: McGraw Hill Education
(Vice President, M&A, McGraw Hill Education) |

I have seen around 5% as well.

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