“HR Heretics” | How CPOs, CHROs, Founders, and Boards Build High Performing Companies Equity Negotiation: The Ultimate Guide to Not Getting Screwed
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Jul 3, 2025 Dive into the intricate world of equity negotiation, where understanding fully diluted share counts and 409A valuations is key to making informed choices. Discover the cautionary tales that highlight how crucial it is to clarify equity offers upfront. The conversation expands to include essential tips for executives navigating complex compensation agreements and liquidity clauses. Plus, learn how innovative tools like Planful and Metaview are revolutionizing workforce planning and recruitment, helping teams leverage data more effectively.
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Ask Fully Diluted Share Count
- Always ask for the fully diluted share count when offered options.
- This helps you calculate your real percentage ownership and understand the value of your shares.
Check Strike Price
- Always ask for the 409A valuation or strike price of your options.
- You must pay the strike price per option to exercise, so it affects your real equity value.
Compare Preferred Price With Strike
- The last preferred price shows what investors paid and signals company value.
- Comparing it to the strike price reveals the net value you actually get from options.