Job Offer Thoughts

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
TXGator
Posts: 70
Joined: Mon Sep 26, 2016 1:38 pm

Job Offer Thoughts

Post by TXGator »

I've received a job offer that seems a bit of divine intervention. Currently at an energy Megacorp with an opportunity to join a pre-ipo energy company with significant jump in title and responsibilities and could use a sanity check from Bogleheads.

Age: 33
Current role in Fortune 5: Engineering Advisor; have been told have executive potential (but we all know nothing is for granted)
Salary: 199k
RSUs: 16k/ yr
Pension: currently vested is about 2200/month @ 65; adds 1.6% of avg salary per year of service
401k: 7% match with low fees

New Job: VP Engineering reporting to CEO
Salary: 245k
Cash Bonus: up to 50% of Salary
Initial Equity Grant: current value of shares $1.0M - 1.5M with more coming following additional venture setup
Annual grant: TBD (in process of determining comp structure post-IPO and I would get to participate in discussions)
401k: 3% match; fees TBD

Insurances are comparable; so I would be forgoing future pension growth and retirement health insurance and potential RSU share count growth

I feel like the potential risks are dwarfed by the jump in title and compensation; the company is already producing strong EBITA with a strong PE backing.

Thanks for any thoughts and considerations
soccerrules
Posts: 1066
Joined: Mon Nov 14, 2016 4:01 pm

Re: Job Offer Thoughts

Post by soccerrules »

Looks like a good move to me financially.

the questions that pop in my head
1) Married ? what does spouse think ?
2) Family - how will this affect your time with spouse and/or kids ?
3) What do you know about the CEO, Board, and other leaders ? Are they the type of people you respect and would want to go into battle with ?

You will discover at some point (me early 40's) that the additional money isn't always worth the sacrifices of Family, Time, Health etc. There will always be people with more/less money/things than you. And more money/things really don't equate to more lasting happiness.
Don't let your outflow exceed your income or your upkeep will be your downfall.
Topic Author
TXGator
Posts: 70
Joined: Mon Sep 26, 2016 1:38 pm

Re: Job Offer Thoughts

Post by TXGator »

soccerrules wrote: Mon May 14, 2018 3:13 pm Looks like a good move to me financially.

the questions that pop in my head
1) Married ? what does spouse think ? she is ready for change after being moved around for the past few years and have seen enough miserable older folks at the megacorp to think long term; plus we get to move back to Houston on our time, which is where we want to be
2) Family - how will this affect your time with spouse and/or kids ? Mostly likely gone more; but I'll admit I've been very cranky with current job so would breathe fresh air and excitement; should help the overall mood
3) What do you know about the CEO, Board, and other leaders ? Are they the type of people you respect and would want to go into battle with ? I have a strong relationship with the COO and one of the PE partners; there's a sense purpose with the team that I haven't seen in a long time

You will discover at some point (me early 40's) that the additional money isn't always worth the sacrifices of Family, Time, Health etc. There will always be people with more/less money/things than you. And more money/things really don't equate to more lasting happiness.
Appreciate the thoughts - I feel like with my daughter being only 4 we have a natural point to change it up before Kindergarten and see her dad excited for a change with work
soccerrules
Posts: 1066
Joined: Mon Nov 14, 2016 4:01 pm

Re: Job Offer Thoughts

Post by soccerrules »

TXGator wrote: Mon May 14, 2018 3:20 pm
soccerrules wrote: Mon May 14, 2018 3:13 pm Looks like a good move to me financially.

the questions that pop in my head
1) Married ? what does spouse think ? she is ready for change after being moved around for the past few years and have seen enough miserable older folks at the megacorp to think long term; plus we get to move back to Houston on our time, which is where we want to be
2) Family - how will this affect your time with spouse and/or kids ? Mostly likely gone more; but I'll admit I've been very cranky with current job so would breathe fresh air and excitement; should help the overall mood
3) What do you know about the CEO, Board, and other leaders ? Are they the type of people you respect and would want to go into battle with ? I have a strong relationship with the COO and one of the PE partners; there's a sense purpose with the team that I haven't seen in a long time

You will discover at some point (me early 40's) that the additional money isn't always worth the sacrifices of Family, Time, Health etc. There will always be people with more/less money/things than you. And more money/things really don't equate to more lasting happiness.
Appreciate the thoughts - I feel like with my daughter being only 4 we have a natural point to change it up before Kindergarten and see her dad excited for a change with work
Your job satisfaction is very central to the decision if not the major driver for sure. (i guess i was looking past that as a given) Moving younger kids is easier for them and you, than moving kids as they get older - MS/HS. (Our oldest 2 were 3.5 and 9 mo when we moved 20 years ago.)

I am sure others will weigh in on their thoughts as well but put my vote (and all it's value :shock: ) in the Go For It! column.
Don't let your outflow exceed your income or your upkeep will be your downfall.
User avatar
archbish99
Posts: 1646
Joined: Fri Jun 10, 2011 6:02 pm

Re: Job Offer Thoughts

Post by archbish99 »

Game out two scenarios: The company succeeds, or the company flops.

If the company succeeds, your equity holdings will be worth quite a lot. (Take the opportunity to sell and diversify when you get it, but also ask about whether you're senior enough to have required holdings in company stock.) It's clearly a win in that case, of course.

In the case most people don't look at, if the company flops... it still seems largely better. Even if the equity grant winds up being worthless, you're getting more present cash. If you're working at these levels at only 33, you probably wouldn't have a problem finding a new place to land if things go south.

Offhand, it sounds like a good choice. If your schedule is going to include more travel, see what can be arranged to also include more time at home when you're not traveling. Can you work from home a day or two per week? Shift your hours to be home when your daughter gets home from school, or be the one to take her? I've recently been through a similar transition of better income but more travel, and finding those ways to stay connected is important for family satisfaction.
I'm not a financial advisor, I just play one on the Internet.
JuniorBH
Posts: 157
Joined: Fri Jun 09, 2017 12:54 pm

Re: Job Offer Thoughts

Post by JuniorBH »

In that situation, I would likely go for it. The equity in the new company could turnout to be a huge win, and even if it isn't, you're

1) getting an increase in cash in the near term and

2) early enough in your career that a swing and miss here doesn't preclude you from finding something else. And, in that event, having the story/experience of taking a shot for all the reasons you listed would play well in a potential interview down the road.
runner3081
Posts: 3927
Joined: Mon Aug 22, 2016 3:22 pm

Re: Job Offer Thoughts

Post by runner3081 »

Given my experience at a failed start up... I would absolutely take the new offer if I was you.

I was in a similar situation a few years back (early 30's). Had a good position, left for slightly less pay and equity in a start up (straight 2% of the company, could not be diluted). We moved half-ways across the country with a 6-month old for that position.

Long story short, it tanked after two years.

Was unemployed for about 30 days, took a job with slightly lower pay in the same field to start somewhere in our newish city (I did a terrible job of building a professional network there). Flash forward 3 years and have switched companies again and pay is significantly higher at a company I want to stay at long-term.

It will work out and financially (one way or another), seems like this is a moderate risk/high reward proposition for you.

Congrats and good luck!
Topic Author
TXGator
Posts: 70
Joined: Mon Sep 26, 2016 1:38 pm

Re: Job Offer Thoughts

Post by TXGator »

Thank you all for the insight! I notified my manager of my intention to leave (and prepared to submit my 2 week notice). He asked if I could hold off for 2 weeks to start the clock, which the other company was fine with given the high-workload period that ends at the end of the month.
staythecourse
Posts: 6993
Joined: Mon Jan 03, 2011 9:40 am

Re: Job Offer Thoughts

Post by staythecourse »

Well too late to put my 2 cents in, but was going to say go for it as well.

If this is where you want to be career wise you should do it. How many times do these opportunities come up? Take you chance now. Worst case situation is the company doesn't explode as everyone hope for, but during that time you will get so much great experience in this new role to help in any job going forward.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle
Topic Author
TXGator
Posts: 70
Joined: Mon Sep 26, 2016 1:38 pm

Re: Job Offer Thoughts

Post by TXGator »

staythecourse wrote: Tue May 15, 2018 9:48 am Well too late to put my 2 cents in, but was going to say go for it as well.

If this is where you want to be career wise you should do it. How many times do these opportunities come up? Take you chance now. Worst case situation is the company doesn't explode as everyone hope for, but during that time you will get so much great experience in this new role to help in any job going forward.

Good luck.
Never too late - always appreciate thoughts. Everyone outside of my immediate group has been 100% supportive of the opportunity, which has been a blessing through this.
FireSekr
Posts: 1116
Joined: Tue Apr 02, 2013 9:54 am

Re: Job Offer Thoughts

Post by FireSekr »

Congrats and good luck, seems like a great opportunity and I was going to suggest going for it but seems like you already have.
Post Reply