Salary, Benefits & Job Offer Questions

What about stock options in an offer?

Equity is not a common offering in a job offer. However with a new start-up that offers little job stability, stock options are a fair way to attract a successful construction executive away from his or her safe work environment. Before entering a negation involving stock options, you should try to evaluate and assess your own value (what you feel you are worth) and then determine what the construction employer can offer before entering into a discussion about stock options. Research the construction employer, who are their investors, partners, clients, etc.. Look into your local trade association for information on construction salary surveys, or ask your construction executive construction recruiters to help you obtain this information. Once you have an idea of what you might expect, you are better positioned to evaluate their offer. When evaluating an offer, try to get help from your stock broker or other financial advisor and make sure to consider the terms such as the duration of vesting, and the idea of immediate vesting should you lose your position with the construction employer. There is no standard when it comes to a stock option offering to a new employee. The stock option offering depends upon the state the construction employer is currently in, the position you are applying for, and what the board of directors and management team has determined the total shares available for new hires. I’ve seen it fairly often that non-founding CEOs get between a 4% and 8% share.


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