What do you do if you want to negotiate stock options or equity in a sales role?

1 Know Value

Before entering any negotiation, you must understand the value of what you're asking for. Stock options and equity represent a potential share in the company's future profits or growth, so research is key. Understand the company's financial health, market position, and growth prospects. This information will help you gauge the potential value of the stock options or equity and how they might complement your overall compensation package.

2 Timing Matters

Timing is everything when it comes to negotiating stock options or equity. Aim to initiate these discussions either when you're being offered a new job or during a performance review when your value to the company is clear. Companies are more likely to consider such requests favorably when they're afraid of losing a valuable employee or when they're trying to attract top talent.

3 Leverage Performance

Your performance is your strongest bargaining chip. Be prepared to articulate your contributions and how they've benefited the company. Highlighting specific successes, particularly those that have directly impacted revenue or growth, can strengthen your case for why you deserve a stake in the company's future through stock options or equity.

4 Understand Terms

It's imperative to understand the terms associated with stock options or equity. Options often come with a vesting schedule and an exercise price, which is the price at which you can buy the stock. Equity might come with conditions like a clawback if you leave the company within a certain timeframe. Familiarize yourself with these terms to ensure you're making an informed decision.

6 Plan for Future

Finally, consider how stock options or equity fit into your long-term financial planning. These forms of compensation can be lucrative but also come with risks. The value of your stake in the company can fluctuate, so make sure you're comfortable with this as part of your compensation and have a strategy for how you'll manage it as part of your broader financial picture.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?