Corp Dev Equity Compensation Agreement Examples?
Does anyone have examples of equity compensation they can share -- such as -- language in the employment agreement / contract, structure, how they're given, etc? First time here with equity compensation, so I'm flying blind.
Also, feedback on your read of compensation (salary, base, equity) is welcome if so inclined. Please provide how/where you're getting your information from (i.e., personal experience, your good friend's comp, the internet, etc). What were your bonus incentives based on? Also, how should I be thinking about compensation progression over time?:
My Experience: 3 years of MM IB, then 5 years of PE-backed Corp Dev, then 2 years of MM IB.
Targeted Employer: Assume founder or PE-backed, ~$50M EBITDA aiming to acquire ~$50M over next 3-5 years. My IB experience is M&A generalist. The company I'm currently talking to is in the same industry as my Corp Dev experience. No deal experience in this industry in IB. Report to the CEO. Overall, I'm industry agnostic but looking for this type of opportunity - I would think same-industry experience is a positive for this specific offer.
Thanks!
This would fit the bill for a pretty standard PE portco equity package.
Whatever nominal dollar amount of equity in the form of PSU's. You should be able to back into it with some basic financials and cap table details
Vest ratably over somewhere between 4 and 7 years
Maybe some performance or discretionary component
Requires you to be there at exit. Probably doesn't accelerate (or at sponsor discretion)
In case of death partial acceleration (I've seen this before, it's nice I guess?)
Return hurdles like 2.0 MOIC or something like that before it pays out. If you're fully vested - at medium returns, probably looks like a 25-50% bonus over whatever period, once you get past 5.0 MOIC it could 2x your total comp over the period
Most likely tied to a formal employment agreement with severance, garden leave, non compete components. But could be a standalone incentive agreement for the CorpDev guy, if he's not considered formally part of the management team and he doesn't get the exec employment agreement
Comp packages vary but assuming not HCOL I'd expect something in the 200's for base for that size business. Bonus could go different ways - deal based bonus or something more performance driven, but still potentially tied to deals. 300 cash a year is possible, but would guess at that point you'd be trading off equity upside.
Thank you. Any chance you have an example of a legal agreement you could DM me (with obvious info redacted)?
I lose you when you say 'nominal dollar of equity, back into it with basic financials and cap table details'. I understand the words but not sure how to apply, anyway you could give a hypothetical scenario?
I really appreciate the help!
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