Friday, 8 November 2013

Wall Street Oasis - Investment Banking & Finance Community: Profit Share vs Stock Options vs Raise - Need Advice

Wall Street Oasis - Investment Banking & Finance Community
The Wall Street Finance Community where investment bankers, consultants, traders, private equity and hedge fund professionals come to learn and play. 
Profit Share vs Stock Options vs Raise - Need Advice
Nov 8th 2013, 22:45, by Orkid

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Fyi here's the story of how I landed my current job.

WSO - Next week I'm going into negotiations with my bosses regarding a change in my contract as a result of the merger. Since we will now technically be 'owned' and working for the listed entity, I'm guessing my 10% profit share is out the window. My boss said "Whatever we decide together, we will make sure that you're better off than with the old contract".

Now, I really like the profit share idea as an incentive, and I also like the stock option idea because that will be what makes me a LOT of money. I know that I will get the stock option at NAV of 10 cents per share, and most definitely be able to sell fairly soonish at at least 3 (currency) per share. However, I have no idea how many shares I'll be allowed to purchase. Depending on that I could make millions or thousands, and I do not want to make thousands because then I'm no better off than with the profit share, seeing as with the profit share I would be able to make millions from just the sale of our current portfolio, and then continue to make good money (no max cap) from bonus/sharing on future investments.

My current base salary is alright, not amazing. But they said that it will be increased significantly together with promotions with time and quite rapidly. My question now: How do I go about this? What is the best solution for me to bring into negotiations? The good thing is that they do care about what I think works best for me, so that's why they suggested the meeting to see what I want.

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