Collin Cadmus – two-time VP of sales, and founder of his own consulting and advisory firm – shares all the details you need to know to understand stock-based compensation.
If you enjoyed this video please share it!
In This Talk, You’ll Learn About:
- Stock options – a basic breakdown
- Expectations based on role and company stage
- Key definitions and terms relevant to options
- Items you don’t know, but should regarding equity
- Hot topics and different ideas stimulating change for the future
Episode Notes:
00:08 Welcome to Straight talk by Collin Cadmus
00:38 Aim of discussion – to fully grasp the concept of equity
00:50 Introduction to the members of the panel and their roles
02:04 Format of the five parts of the agenda for discussion
02:59 What are stock options and the reasons for issuing them
06:01 Examples of projected profits to be garnered after joining as a SDR, VP, or AE
07:43 Best-case scenario earnings on stock as a SDR
09:13 Expectations and growth of SDR and AEs
11:13 Basic Terminologies to expect
14:48 The role of the Account Executive in the equity process
16:15 Getting the best market rate and/or Commission plan
18:11 How to avoid dilution and anti-dilution protection
19:14 Explanation of the different pay rates at different stages in your career
20:40 Expectations of the VP of sales
25:03 Exiting a firm and purchasing shares experiences
26:48 Decisions surrounding leaving a company without exercising your stock options
29:35 Comp package expectations for billion-dollar companies
33:03 What happens when you leave before your options have fully vested and how to think about stock options and share dilution
35:26 Basic equity/share terms
35:53 Definition of an option’s Strike Price
36:00 Definition of Stock Cliff period
36:22 Definition of Vesting Period
37:26 Exercise and negotiation period
38:85 Differences between preferred and common stock
39:55 Negotiating terms and processes
41:05 Definition/explanation on selling secondary stocks to a new or existing investor
43:29 How to handle separation agreements
44:33 Secondary rights inquiries prior to joining a company
46:18 How founders can cash out between raising rounds of capital
47:33 Differences between single trigger and a double trigger acceleration
53:02 Negotiation practices and options whilst in a position for 4 years
56:44 How to navigate legal jargons and avoid errors in the negotiation process
58:48 The expected earnings from an exit negotiation
61:20 How to differentiate tax implications
62:17 Handling liquidity to earn the best benefits
63:56 How to optimize for cash versus equity
70:30 Explanations on the antiquated four-year vesting schedule
73:49 Steps in winning at the negotiation process
76:27 The impact of remote work on everyday life
77:19 Requesting for the company to invest in your development
78:07 Optimal times to request and negotiate added benefits
81:47 Suggestions on the inclusion of a lawyer in the negotiation process
83:00 Advice on forming long-lasting bonds with persons in that area of expertise
85:14 The importance of understanding different tax and legal implications for different countries
86:01 Disclaimer and call to action to consult a tax attorney for correct information
87:54 Title inflation and its impact
89:58 Thank you and invitation to visit the website and purchase – Addicted to the Process by Scott Leese found at link below
Books mentioned in the talk:
Addicted to the Process: How to Close Transactional Sales with Confidence and Consistency by Scott Leese