In the high-stakes world of growth-stage hiring, compensation can be a dealmaker, or a dealbreaker.
We’ve seen it too often: a company finds the perfect candidate, builds momentum through interviews, and reaches the offer stage—only to lose them over a misaligned or unclear comp package.
This guide unpacks the most common missteps we see when it comes to executive compensation, and how to avoid them. We’ll also share two example compensation packages from our recent placements that reflect current market expectations for top-tier talent.
Top 3 Compensation Pitfalls (And How to Avoid Them)
1. Misaligned Compensation Expectations
Misaligned compensation expectations between companies and candidates can lead to lost time, lost resources, and lots of frustration.
💡 Fix it: Align early with talent partners on comp expectations during the intake process, including benchmarking against market rates, and calibrating for demand, geography, stage of company, and candidate’s experience level. For candidates, take the time to understand their personal goals and financial needs. Then tailor the comp mix accordingly while ensuring it aligns with market standards. That means balancing base, bonus, and equity in a way that feels both competitive and personal.
2. Lack Of A Clear or Compelling Equity Package
Equity is a powerful tool—but only when it’s tailored to the candidate. Some candidates are highly motivated by long-term upside; others may prioritize cash-in-hand.
💡 Fix it: Be specific. Help candidates understand the current and future value of equity. Clearly define equity type, grant size, timeline, current valuation, and what future raises might mean for them.
When offering equity, transparency is key:
- Share the type of equity and the vesting schedule (e.g., 4-year vest with a 1-year cliff)
- Provide the details to help evaluate equity- This may include total shares outstanding, current valuation, and shares outstanding
- Disclose any expected dilution activities (future capital raises)
- Outline your exit strategy or timeline, if known—this helps the candidate understand when and how their equity might become liquid
- Consider how critical the role is to the company’s success, and weight equity accordingly
What Top Talent Wants in a Comp Package
- Base Salary that reflects market value and is competitive with offers they might be receiving from other companies
- Bonus Potential that rewards personal and company performance and is realistically achievable.
- Equity that feels meaningful, understandable, and is tied to the company’s success and timeline
- Benefits that support lifestyle, flexibility, and family
- Clarity & Certainty in how it’s all structured and communicated.
Two Sample Packages from Today’s Market
📊 CFO at a Series-B SaaS Company (LA-based, remote role)
- Base Salary: $260,000
- Bonus: 30% target ($84,000), tied to EBITDA and cash runway milestones
- Equity: 1.25%, 4-year vest, standard 1-year cliff
- Benefits: 401k, healthcare, flexible PTO
- Perks: Executive coach stipend, participation in board meetings
🟢 Why it worked: The candidate had offers from both public and private companies. The client won by being upfront about equity value projections and offering real visibility into company financials during diligence.
📈 VP of Marketing at a Series B Consumer-Tech Company (Remote-first)
- Base Salary: $210,000
- Bonus: 20% target ($42,000), tied to pipeline growth and CAC targets
- Equity: 0.6% in ISOs, accelerated vesting on acquisition
- Benefits: Full healthcare for family, WFH stipend, 16-week parental leave
🟢 Why it worked: This candidate had strong offers from larger tech firms but was drawn to the company’s mission and the runway to build. The equity acceleration and visibility into the marketing budget sealed the deal.
How We Help Our Clients
We bring an operator mindset and a deep network of executive talent. Our team aligns on compensation strategy before we ever go to market. This helps you avoid costly missteps and close candidates faster.
- Compensation benchmarking across market rates within VC and Growth Equity-backed companies.
- Equity guidance
- Offer strategy and pre-close risk analysis
- Transparent candidate communication to build trust and uncover motivators
- Post-offer support to ensure smooth onboarding
