What does it mean? It means the structure of the deal is just as important as the amount. Private equity has a phrase: 'Your price, my terms.'

Sales leaders should be paid 70/30 or 80/20 base/commission vs 50/50. Compensation structures that focus disproportionately on short-term cash compensation just for the head of sales pushes sales out of alignment with the rest of the company. The CRO and the CMO should have the same stake in the business succeeding and aligned compensation shows that you understand how the business generates revenue and your role in making sure that continues. And are given enough time to review your offer with a good lawyer.įundamentally, what you are trying to understand is this:ĭoes the company's ideas about itself (as reflected in its forecast, targets, and valuation) align with the world's ideas about the company (as reflected in actual performance to target, pipeline generation, churn, quota attainment, and profitable unit economics)Įxecutive teams have the right to fully aligned, market-driven salaries and commissions.

This means you are provided with adequate due diligence on company performance and expectations before you join. Prioritizing short-term cash instead of long-term wealth.įocus on these 5 areas to protect your financial future: 90% of startup executives negotiate their comp packages wrong.

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