Summary:
Bhavik Vashi made over $2 million from equity in Anaplan.
Identify what you want before negotiating for equity.
Align your goals with a growing company that offers equity.
Your value to the company directly influences your equity stake.
Network proactively to ensure your contributions are recognized.
Bhavik Vashi, at just 32 years old, achieved the dream of many in Silicon Valley by cashing out over $2 million from his equity in the software startup Anaplan. Having started as an entry-level consultant and rising to vice president, Vashi shares his insights on effectively negotiating for equity in a company.
1. Identify What You Want
The first step in negotiating equity is to clarify your goals. Vashi emphasizes that many employees mistakenly focus too much on equity, overlooking their immediate cash compensation needs. He advises ensuring your basic living expenses are covered before pursuing equity.
2. Ensure Company Goals Align with Yours
It’s essential to work for a company that not only offers equity but is also on a successful trajectory. Vashi’s experience with Anaplan, which grew significantly during his tenure, highlights the importance of aligning personal and company goals.
3. Be Crucial to Company Success
To be eligible for equity, you must demonstrate your value to the organization. Vashi notes that the correlation between your importance to the company and the equity you receive is direct. Contributions matter.
4. Network, Network, Network
Visibility is key. Vashi suggests proactively networking within your company to ensure your contributions are recognized. Don’t rely solely on your manager to advocate for you; take the initiative to make your accomplishments known.
5. Be Prepared for Opportunities
Preparation is vital when negotiating. Document your contributions and build a portfolio that showcases how your work has contributed to the company’s success. Vashi also provides a sample script for negotiating equity, emphasizing the importance of tying your financial goals to the company’s success.
"When you’re negotiating for equity versus cash compensation, you’re implicitly saying that... I’m putting my bet [on] the company’s success." - Bhavik Vashi
Vashi's insights serve as a guide for anyone looking to secure a stake in their company's future success, making the case for equity not just as a perk, but as a strategic financial move.
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