“Waterfall Distribution” – What’s That? The Private Equity Pitch to Employees

Sklover Working Wisdom

The Private Equity Pitch to Employees. “In The “Private Equity Pitch” to Employees: More and more employees are finding their employers being purchased by Private Equity investors. It “just” requires commitment, lower salaries, diminished benefits, and a whole lot of blind faith.

Equity 130

Illegal Internship: Two Years of Experience, No Salary, No Equity

Evil HR Lady

The courts have a seven-factor test : To keep reading, click here: Illegal Internship: Two Years of Experience, No Salary, No Equity. The post Illegal Internship: Two Years of Experience, No Salary, No Equity appeared first on Evil HR Lady. Unpaid internships aren’t inherently wrong. But ones that require two years of experience and have a whole list of responsibilities for a for-profit firm are illegal.

Equity 100

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“Umbrella Negotiating” – Best Response to Private Equity “Hurricane Tactics”

Sklover Working Wisdom

After three generations of family ownership, during which the staff grew from two to 150, the grandchildren-owners received an inquiry from a Private Equity firm about their interest in possibly purchasing the company. Pretty soon, the Private Equity firm, their lawyers and their accountants began reviewing the company’s financial records, bank statements, leases, employment agreements, all as part of their “due diligence,” upon which their formal “offer” would be based.

Equity 100

Breaking Down the Gender Equity Pay Adjustments at Salesforce.

The HR Capitalist

Salesforce just made a move to provide pay equity increases across its workforce to eliminate any and all gender pay issues, job by job. We looked at every single salary.”. Salesforce has declined to clarify the $3 million figure or provide further details—the size of the average adjustment, how many employees saw their salaries changed, and how they reacted—but is going to put out a report with more information next year.".

Equity 124

“Private Equity Buying Your Employer? Resist These 11 Employment Negotiation Tactics”

Sklover Working Wisdom

ACTUAL “CASE HISTORIES ”: For many years I have counseled and negotiated on behalf of employees when their employers (a) are being purchased by Private Equity investors, (b) are owned by Private Equity investors, and (c) are being sold by Private Equity investors. I’ve also represented employees being recruited to work for Private Equity-owned employers, commonly referred to as Private Equity “Portfolio Companies.”.

Equity 109

“What happens to my employee equity if the company is sold or IPO’d?”

Sklover Working Wisdom

Question : I was fascinated about your bright explanation of equity plans in your newsletter entitled “ Long Term Incentive Compensation: 10 Basic Concepts.” First, carefully review your Equity Plan, or have someone do so for you. The first step in your analysis of what happens to your equity is “What does the Equity Plan say, if anything, about this circumstance?” Usually what happens upon a sale of the company is covered in an Equity Plan, but not always.

Equity 126

“How do I ask a new employer for an equity stake?”

Sklover Working Wisdom

I am wondering if it is acceptable to ask for an equity stake, and if so, how to do so? Answer: Dear John: It is not very common for a prospective employee to ask a prospective employer for an equity stake right off the bat – without either “side” knowing the other all that well. Being an equity stake owner can also result in serious and long-term legal obligations and significant financial liabilities.

Equity 109

“I am being urged to invest in my employer by new Private Equity owners; any concerns?”

Sklover Working Wisdom

Question: My company (small, privately held) is in the process of being purchased by a “private equity” firm. Answer: Dear Brian: For three decades now I’ve seen many employees in your circumstances invest along with Private Equity purchasers of their employers. In my experience, Private Equity companies are interested in one thing, and one thing only: Return On Investment, or “ROI.” Trust me, the Private Equity owners will not tell you of these plans.

Equity 109

How Buffer Approaches Salary Transparency (It's Kind of Cool)

The HR Capitalist

As you're aware, companies have started communicating they'll be adjusting the salaries of some of this high priced talent to reflect the cost of living in their new locations. And this is the point where we merge both topics - salary transparency and geographical adjustments.

2020 113

In Defense of Not Broadcasting Salaries in the Jobs You Post.

The HR Capitalist

Salary Information about the job. But providing salary information about the job? I think posting salaries in the recruiting process is a weak play. When you post the expected salary for the job, or its weak cousin - the salary range - you're narrowing your marketplace.

2020 132

sending an anonymous note to my wife’s employer, internships and equity, and more

Ask a Manager

Internships and equity. I am struggling with all the questions of equity that arise around situations like this. If you were exempt, the pay question would be moot since your salary doesn’t change based on the hours you work.) It’s five answers to five questions.

2020 43

The Best Indicator of Startup Success: The CEO's Salary.

The HR Capitalist

Here's the quote from Peter Thiel from TechCrunch in 2008 : The lower the CEO salary, the more likely it is to succeed. The CEO’s salary sets a cap for everyone else. It aligns his interest with the equity holders. Equity is the best way to find people who are aligned with these interests of early stage companies.

2015 118

RSU’s: Restricted Stock Units – 8 Essential Insights

Sklover Working Wisdom

The salary, bonus and benefits she was offered by each were considerable. A unique and sophisticated model to gain significant protections to both your employment and your equity. Acquiring Job Offers and Offer Letters Monthly Newsletter Library Offer/"Welcome" Aboard Letters Private Equity Employment Stock, Stock Options, "Equity" Recent Posts“The large print giveth and the small print taketh away.”. – Tom Waits.

2019 100

when asked about salary, I say “I’ll start for $X and earn the rest through merit”

Ask a Manager

This post, when asked about salary, I say “I’ll start for $X and earn the rest through merit” , was originally published by Alison Green on Ask a Manager. I’d do your salary research and just ask for what you think you’re worth; don’t make it any more complicated than that.

2021 43

Offered a Position and Shares in a Start-Up? – 10 Traps in the Legal Papers, and Your Ways Out

Sklover Working Wisdom

On a salary lower than he was used to, and minimal benefits, he built quite a powerhouse in just a few years. It is not easy because lawyers for business founders or owners – particularly “Private Equity” owners, almost always make it difficult, and intentionally so. Intellectual Property You Create: I have seen clients hired into companies with promises of equity that vest over time, provided they take a very low salary for a while.

2016 100

“Forming or Joining a Start-Up? – 16 Questions that Need to Be Answered”

Sklover Working Wisdom

Martin expected to receive a much higher salary than Jessica would receive; Jessica presumed they would be equal. Want to Ask for Equity from Private Equity or other Private Owners? Use our “Model Letter for Requesting Management Equity from Private Equity or Other Private Owners.” Are you and the founders going to take a salary? The important thing is that there not be any surprises, especially as to possible differences in salary levels.

2016 100

Massachusetts Loses Mind: Passes Law Outlawing Employers Asking For Salary History.

The HR Capitalist

In a prime example of lawmakers not understanding business, the state has outlawed employers from asking interviewees about their salary history. The law was signed by Republican Governor Charlie Baker on Monday, making Massachusetts the first state to pass a law that prohibits employers from asking interviewees about their salary history, keeping them from basing someone’s pay on what they previously made, though anyone can volunteer that information if they so choose.

Voluntary – Key Words & Phrases

Sklover Working Wisdom

What if you left earlier than that because, all of a sudden, your salary was reduced by 40%, and your family likes to eat three meals a day? Key Words & Phrases Non-Compete's and Confidentiality Raise, Bonus, Compensation Repayment Obligations Specific Terms and Provisions Stock, Stock Options, "Equity" Wording and MeaningBe on the lookout for. Voluntary,” as in “Voluntary Departure,” “Voluntary Resignation” or “Voluntary Waiver”.

2019 100

Working Women: The Latest Statistics On The Gender Pay Gap

Career Realism

The uncontrolled gender pay gap measures the median salary for all men and women regardless of job type or worker seniority. The controlled gender pay gap measures the median salary for all men and women who work the same job and have the same qualifications.

2021 69

Before Starting the Equal Pay Discussions Do a Salary Review


Now before you start crunching numbers and looking at salaries between men and women at your organization to see if your firm might have an issue with this, ask yourself, when is the last time you did a true salary and job review? You don’t want to set a salary for a job description and forget it. There was a lot of buzz last week with regarding the 2014 Paycheck Fairness Act (and Equal Pay Day). The act was put to a vote in the Senate — and failed.

2014 96

The Transparent Salary Model at Buffer: Hey Comrade!

HR Capitalist

But one company has gone big (Buffer) and not only made salaries available to all employees, but also to the outside world. . See more on the model as well as the actual salaries of employees at Buffer by clicking here. For now, here''s the highlights: The salary formula. Salary = job type X seniority X experience + location (+ $10K if salary choice). equity / salary choice.

Long Term Incentive Compensation: 10 Basic Concepts

Sklover Working Wisdom

In a very general way, we divide “employee compensation” into three categories: (1) base salary, (2) short term “incentive” compensation, which is usually either in the form of commissions or bonus, and (3) long term “incentive” compensation (or “LTIC”), which is usually in the form of some kind of ownership interest in the company. Equity ” – “Equity” is a rather broad concept. Equity may take many different forms, and have many different names.

Offer Letter or Company Plan – Which One Governs?

Sklover Working Wisdom

When Lemuel insisted on an explanation, she responded, “Your Offer Letter stated clearly ‘Your compensation consists of a base salary, an annual bonus and health care coverage. It said, “You get salary, bonus and health insurance, and nothing else.” “Whoever is careless with the truth in small matters cannot be trusted with important matters.”. – Albert Einstein.

2017 100

interviewer wants to know my current salary (with an update already included!)

Ask a Manager

At my first phone interview, they told me the salary range — about 30%-50% above what I’m paid now. I knew my salary at my current company was low, and so I was very excited to talk to a company that wasn’t asking my current salary. My pay has gone up based on a percentage of my (low) salary, even as I’ve taken on more responsibility. And I just found out that asking salary history will be illegal in my state (Illinois) on 9/29.

employer required me agree to a salary during our first conversation

Ask a Manager

A reader writes: I was recently interviewing with a nonprofit, and in the screening interview, a brief 15-minute conversation with HR, I was asked my salary requirements. HR asked me to confirm, then and there, that I was okay with the salary they provided. in the follow-up email coordinating my visit to the office, requested I confirm I would take the stated salary. As a candidate, what is a reasonable level of salary commitment to make before you have a chance to negotiate?

2019 31

“When laid off, can I get my unvested options vested?”

Sklover Working Wisdom

I am currently employed by a large tech company and I have received equity compensation throughout my tenure. Some of this equity has yet to vest. My experience is that a great many “equity” plans provide for continued vesting so long as the employee is terminated without cause, and the employee does not compete directly or share confidential informatio n. By “equity” I refer to stock, stock options and other securities of a company. Question: Hi, Alan.

2013 109

FMLA – Great Tool to E-x-t-e-n-d Employment

Sklover Working Wisdom

That said, some employers permit employees to use accrued sick days and vacation days to get paid during their otherwise-unpaid FMLA leaves, and a few employers even pay employees their full salaries during FMLA leaves. Basics Before Negotiating Before Resigning FMLA FMLA, COBRA and Pregnancy Monthly Newsletter Library Resigning from Your Job Severance Packages Stock, Stock Options, "Equity “ The cure for anger is delay.”. – Seneca.

2016 100

the first state has made it illegal to ask about salary history

Ask a Manager

The state’s new pay equity law, which was signed last week and goes into effect next summer, makes Massachusetts the first state in the U.S. to ban asking about salary history. The step is a victory for job seekers, who have long been put at a disadvantage by employers who base salary offers on past earnings, which has meant that people who have been making below-market wages are more likely to continue to be underpaid. salary

“My former employer says he will waive my non-compete, but only if I repay him two months salary. Is this extortion?”

Sklover Working Wisdom

However, if I wanted to return my salary to him, he would destroy the non-compete. There are three primary reasons we don’t see “buy-back-your-freedom” offers such as the one your former employer has made: the legal concepts of (a) “secrecy,” (b) “necessity,” and (c) “equity.” Question: Dear Mr. Sklover: I have worked for my employer not quite two months. Today I was told I did not meet his sales goals.

how to answer job candidates’ questions about salary when I don’t have a range to provide

Ask a Manager

During these phases, we are not provided any information with regard to salary. Generally speaking, we determine salary based on an individual assessment of the position, the finalist’s skills and abilities, and the current market. What I can tell you is we are aware of the salary requirement you listed in your initial application and have continued to move forward with interviewing you as a serious candidate. Talk to your CEO about how he’s handling salaries.

2018 31

Negotiating Yourself Right Out of an Offer

Career Alley

Salary negotiations can be challenging. Candidates often want a step up in salary when making a move. John was definitely excited about the role and the company, but he had hoped for a higher salary than the company had slated. The management recognizes John’s value and approves a salary increase of $25K over the original requisition, an amount previously unheard of. By Rob Reeves , President, CEO. So you fancy yourself a skilled negotiator?

Offer 207

employers say they appreciate that I tried to negotiate salary, but they won’t budge

Ask a Manager

With the last two jobs I’ve been offered (both in the last year), I have tried to negotiate on flexible scheduling and/or salary. They offered me a certain salary and I asked if they could come up from that number. I presented the (publicly available) salary information for the other employees at the same level and asked that my salary offer match the higher of the range. Just because you can try to negotiate salary doesn’t mean that you will always succeed.

2017 26

How to Negotiate a $109M Severance Package

Career Solvers

His severance benefits, including equity awards, were laid out in his employment letter. salary negotiation Henrique de Castro severance packages Yahoo COO There’s been a lot of press about Yahoo COO Henrique de Castro getting fired by CEO Marissa Mayer after just one year in the job. Much of the press revolves around his $109M severance package because people are dumbfounded by how anyone could receive so much money for failing.

2014 69

What in the world is realizable pay?


Unfortunately, there are major disconnects between salary transparency and organization performance. Realizable pay is inclusive of all base salary amounts coupled with long-term cash incentive awards and is adjusted to meet the target level at the end of the measurement period. The total realizable value for these grants and payments includes the base salary reported for all years in the measurement period plus the bonus reported. HR pay ranges realizable pay salary

2015 99

I earn more than my peers, and they’re not happy

Ask a Manager

During the initial employment offer, the company offered their base salary for a starting amount. Since I did my homework on the average salary of the role in this area, I countered with a number closer to the average. salary

2020 41

Finance for Recruitment Entrepreneurs

Recruit CRM

When an entrepreneur starts a company she can give the company money in two ways, as equity (money for shares- ownership) and as a loan ( also called debt). Equity. Equity. Employee Salaries. Now let us look at the cost of equity. So the cost of equity is 28.5 %.

How Do I Quit My Own Startup or Side Hustle?

Ms. Career Girl

If we own the whole company and there is enough money to pay a CEO salary AND a distribution back to us — wonderful. In that case, we have to rely on the value of our equity as the payoff. For some Founders, their “job” at their startup isn’t necessarily something they want to keep. There can be a ton of factors at play, whether it’s “I can’t afford to do this any longer” or “I’m more passionate about something else.”

should I worry that I’m being overpaid?

Ask A Manager

My current salary at the for-profit was already a significant raise from my previous job – which I am very grateful for. Come review time, my boss notices this “discrepancy” and, despite a review that showed solid but not dazzling performance, gave me a 20% “equity” raise, because she felt it was inappropriate for a manager to be making less than her direct report. salary

2014 78

Difference Between Investment Banking and Venture Capital

Imarticus Learning

Venture capital fills this gap by picking up equity in such firms as their investments. Since they own significant equity in the companies it is natural that they sit on the board not just to protect their investments but also to significantly influence the decisions, strategies and operations directed at the growth and profitability of the firm. They advise on equity markets, mutual fund investments, and play a consultant to borrowers in their financial and borrowing journeys.

Alleged Pay Discrimination at Google Makes Marc Benioff and Salesforce Look Amazing.

The HR Capitalist

Back in late 2015, I reported on proactive moves by Salesforce to do pay equity increases across its workforce to eliminate any and all gender pay issues, job by job. Here's a rundown from the post : "In a panel at a conference organized by Fortune last week, Marc Benioff, the CEO of the cloud-based software company Salesforce, said that he recently ordered a review of all 17,000employees’ salaries to see if female employees’ pay was in line with those of male employees doing similar jobs.

2017 81

5 Nifty LinkedIn Hacks That Make Executive Job Search Easier

Executive Career Brand

In November 2016, LinkedIn rolled out a new feature, LinkedIn Salary, that allows you to compare your salary against others with similar jobs, aiding you in future salary/compensation negotiations. In an article on the LinkedIn Blog , Ryan Sandler, LinkedIn’s Senior Product Manager, wrote: “With LinkedIn Salary, we’ve tapped into our network of more than 460+ million members to provide deep insights into the compensation landscape.

2017 196

Closing Candidates: A How-To in a Hot Job Market

Career Alley

This candidate, who was directly recruited out of her organization, had to choose from one of four offers – all with a 10% increase in base salary and a significant equity component. In a hot market, companies have to get creative when closing candidates so they may decide to offer more (either in base, OTE or equity) to excite their prospective employee. What is your currently salary?

2012 227

The Money Mindset Shifts That Changed My Life

Ms. Career Girl

I had a vision for creating gender equity in the venture capital world and I sacrificed all my time and energy for this dream. Most people are a slave to money, to their salaries, and never get off the hamster wheel. I grew up in the Midwest as the daughter of immigrants.

2020 153