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I've interviewed with this startup, and the discussions have gone well, to the point where the SVP of Sales has asked me to design my compensation plan. This is a nice luxury, but puts the pressure on me to figure out something that's reasonable for both parties.
Here's the background:
- The company is almost 5 years old, generating revenue, not necessarily throwing off much cash. It has several dozen + employees.
- Role is head of Business Development (developing a plan for alliances, new channels, etc. and developing those channels).
- Long-term objective is to make the channel part of the business 50% of revenues
- My annual expenses require a base of $120,000 just to break even, without considering the money needed to finish a house I'm building (very low 5 figures).
- Current comp plan at another company is $250K at quota, it was a little higher at a previous company, and I outperformed.
- The channels piece has not been successful so far -- primarily due to the immaturity of the market and possibly due to product immaturity.
Based on your experience, what do you advise as to how to structure this? I'm thinking of:
--Pay living expenses Base --> $120,000
--Motivate to exceed performance objectives Commission --> additional $100,000 at target
--Motivate to build a sustainable business --> 1% equity
The 1% is probably high, but I don't want to start too low. What do you think is reasonable?
Any sage advice?
Thanks. This means a lot.
Thanks. This means a lot.
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