Category: Compensation

stock option exercise period

The Unfair Stock Option Exercise Period

Understanding the post-termination exercise period for stock options is crucial for tech startup founders, advisors, board directors and early-stage venture investors. In this comprehensive guide, you’ll gain valuable insights into…

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sales commissions

Selecting Your Sales Commission Metric

For companies that don’t have a self-service customer acquisition model, no other function ties more directly to financial results than Sales.  Because of this, it is critical to have strong…

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startup compensation

Founder & Early Employee Compensation

In the earliest days of a startup venture, there are no published compensation rates or even good studies to use as guidance.  That’s because each company and founder situation is…

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sales compensation

Documenting Your Sales Compensation Plan

I can’t tell you how many startups go through the effort to think through the best method to compensate their sales team but don’t take the next step to document…

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sales commission compensation plan

A Variant of the Straight Line Sales Commission Plan

In the spirit of keeping a sales commission plan simple, many sales executives choose to use a simple straight-line methodology.  In other words, 88% achievement of the sales goal equates…

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startup mistakes

Absolute Versus Relative Sales Commission Plans

Compensating a sales team is a tricky and sensitive endeavor that requires a lot of advanced planning.  I previously wrote about my 5 Golden Rules of Sales Compensation.  But even if…

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MBO bonus plan

MBOs Demystified

“Show me the incentive and I’ll show you the outcome” is a quote from Charlie Munger often used to describe the direct relationship between special compensation and behavior. Certain roles…

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startup advisor compensation

Compensating an Advisor

How much equity should you give to compensate an advisor?  Should the shares carry any special provisions like anti-dilution or change-of-control acceleration?  What about giving the advisor cash compensation?  Tough…

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sales commission compensation

5 Golden Rules of Sales Compensation

Unlock the potential of your startup’s sales team with effective sales compensation plans. In this comprehensive guide, discover the 5 golden rules that startup founders need to know to create…

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sales commission plan mistakes

Is Your Sales Incentive Plan Driving Bad Behavior?

We sometimes refer to quota-carrying sales reps as “coin-operated”, but it’s not actually an insult.  Charlie Munger, longtime vice chairman of Berkshire Hathaway, is quoted as saying “Show me the…

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