Author Topic: Help me value a new job offer!  (Read 2844 times)

Bikesy

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Help me value a new job offer!
« on: June 10, 2014, 02:16:02 PM »
I recently received a job offer and I wanted some feedback on how you would compare the compensation package to a typical salary scenario.

Base pay of 75k
Sign on bonus of 20k
2nd year bonus of 20k
60k in stock @ current value but doesn't vest fully until end of third year.

The company is large and growing (to help value stock)

I'm currently making a little under 70k...this position would require my wife and I to move to a different state (lower col then current).  My eyes light up when i think about making 100k+ per year including the stock value but I wanted to get your opinions on how to weight the value of stock and bonuses.

Thanks!

shotgunwilly

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Re: Help me value a new job offer!
« Reply #1 on: June 10, 2014, 02:32:13 PM »
You need to evaluate the benefits too.  I would also consider things like the ability to advance compared to your position now.  How does moving affect your family? Is it an area you would enjoy? Or possibly live forever? Lots of questions you need to ask yourself.

frugaliknowit

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Re: Help me value a new job offer!
« Reply #2 on: June 10, 2014, 02:48:16 PM »
Does it include a relocation package?  If not, I would be more wary than otherwise as they have less of a stake in your success and there's the risk that you and your wife move at your expense, then get dumped.

Numbers Man

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Re: Help me value a new job offer!
« Reply #3 on: June 10, 2014, 03:04:58 PM »
I would take the job with all things being equal. The compensation with a lower C.O.L. state could be blissful. As far as relocation expenses, they are relatively minimal in the whole scheme of things.

Bikesy

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Re: Help me value a new job offer!
« Reply #4 on: June 10, 2014, 04:11:41 PM »
Relocation expenses are fully covered.  I wouldn't consider the area to be at the top of our list but it's not terrible.  Benefits are largely the same with a little less generous 401k match (maybe 2k difference per year)  The great thing is there's a good chance for me to transfer back to our hometown in approximately 18 months!

gimp

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Re: Help me value a new job offer!
« Reply #5 on: June 10, 2014, 05:00:57 PM »
The offer seems pretty decent. The "good chance to relocate back" seems a bit off - would you want to move your whole family twice, or would you want to live separately from them for 18 months, or what?

rmendpara

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Re: Help me value a new job offer!
« Reply #6 on: June 10, 2014, 09:03:26 PM »
I recently received a job offer and I wanted some feedback on how you would compare the compensation package to a typical salary scenario.

Base pay of 75k
Sign on bonus of 20k
2nd year bonus of 20k
60k in stock @ current value but doesn't vest fully until end of third year.

The company is large and growing (to help value stock)

I'm currently making a little under 70k...this position would require my wife and I to move to a different state (lower col then current).  My eyes light up when i think about making 100k+ per year including the stock value but I wanted to get your opinions on how to weight the value of stock and bonuses.

Thanks!

Looks like $115k for 2 years and $95k for yr 3. Not sure what industry/position you're in, but it seems like a solid offer. Congratulations!

I'd hope they are stock awards, and not stock options, as options with a strike at today's price may be worthless as they come time to vest if the market turns down in the next few years.

Regardless of your views on the company, the $20k grant should be viewed as "funny money", as the value could be anything in a few years. Options are more risky than RSAs/RSUs, but I'm assuming this is part of their standard compensation mix at your level.

Enjoy the new town! Hopefully in a few years you'll have the chance to move back if that's what your heart desires.

Bikesy

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Re: Help me value a new job offer!
« Reply #7 on: June 11, 2014, 01:20:56 AM »
Regarding the move...it's just my wife and I.  No kids, no house, not a lot in the possessions category so two moves in a year or two wouldn't be overly difficult.  Almost all of the moving logistics is taken care of by the company.

The stock part of the compensation is RSUs but the vesting period is back end weighted and I wouldn't be at 100% until the end of year 3.

What would be the best part of this offer to negotiate?  This is my initial offer and I know this is my best chance to have some bargaining power.  I'm assuming the RSU quantity or sign on bonus would be the place they're most likely to move in.