As you deliberate the merits of leaving your current position to join a new one, there’s probably a lot on your mind and a lot of feelings stirring in your gut. We will go through some of these and review some unforeseen events that may arise when evaluating a job offer.
Leaving Money on the Table
When you leave your current employer, you will have to forfeit your unvested shares and options. This is tough and it’s usually the case, and it can be summed up with the following expression.
“C’est la vie.”
Frequently, employees can stay at a job that is not appropriate for them, their career, or their needs because they are waiting for the shares to vest. But this is a never ending cycle and you can get caught up in it.
If the cash flow and equity value are a source of funding for future endeavors, and you are serious about leaving then we must understand how the equity and cash flow from the new employer will help meet your future needs.
Additionally, you can use the old equity as a bargaining chip for your job offer at the new company.
Total Cost of New Employment
Both cash flow and equity are very important considerations for a new job, but they don’t cover the entire picture. Healthcare benefits can be a large consideration based on where you are in your life. Perhaps you need a lot of benefits or just the bare minimum.
Further, 401(k) plans, or a lack of one, can be a significant deciding factor for you.
Plus, the earlier you join an early stage startup, the longer the time frame for a liquidity event. Does the liquidity event line up with your cash flow needs?
Upside at New Employer When Evaluating a Job Offer
What’s your level of confidence in the upside of the new employer versus your current one? When the new company does well, you’ll be happy, but what if it moves in the wrong direction? Can you afford to take on that risk?
If you can take on early stage company risk that matches your career ambitions then you may be moving to the right place.
Questions about the big decision? Feel free to reach out.