Should I move on?

tookotook

Hello,

I'm working for a successful startup company, one of the leaders in their field.
And I've been employed with them straight out of college for more than 4 years, in fact I'm the longest serving employee. The work is very interesting, learning lots every day but I'm tempted to move on and experience something new, and also earn a bigger paycheck.

My employer has promised me and all the employees ESOP shares in the company, and an acquisition does seem likely. The company has yet to deliever (first mentioned two years ago) on their promise, but I do trust the owners. I'm wondering if I should move on, and forget about the shares?
Thanks

BreadnBuddha

Promises mean nothing. It's a harsh reality, but the only thing that matters is action. ESOP shares are well and good as a form of bonus for performance and profitabilty, but in truth, what you personally would benefit from are divestable shares as sweat equity. If you're looking after yourself, as you should, you should forget all about promises made to you and other less tenured employees and start thinking about the arrangement that delivers the most for you.

If you believe you are a valuable contributor to the success of this startup venture, have worked there longer than any other employee and very importantly, that your continued contribution is close to essential, then it's time to set out for the owners your position. This may seem daunting, but if the owners are smart people, I'm sure you can tactfully put the issue on the table for discussion. I'm no expert in relation to ESOP programmes but I certainly know that the shares NEVER come without a whole host of conditions. ESOP shares are not 'tradable' shares. You can't sell them. You can often only cash them in when it suits the true owners of the company, and in most cases, the only reward for owning them is the dividend payable, which is also never a sure thing.

If you have contributed a lot to the establishment of the business, to bringing it to the point where the owners are looking towards an acquisition and effectively a cash-out for themselves, you could in all fairness have an interest, but you need to establish this with them formally. Remember, promises mean nothing.

So, forget about the other employees for now and look at whether or not YOU should be trying to reach an agreement with them on your own. You can be absolutely certain that they are looking out for themselves first and foremost, as should you.

What's the worst that could happen? You get 'moved on'? You're already considering leaving, so what have you got to lose by putting your neck out a little now, with potentially a reasonable reward for your 4+ years of sevice to a successful startup that could be swallowed up by new owners. New owners may have no interest in implementing an ESOP, let alone rewarding the employees who helped build someone elses business.

You're in an interesting situation I think. Keep us posted on what you decide to do and how it all works out for you.

Also, welcome to Boards.ie, or welcome back!

tookotook

Thanks very much for that great answer. I'll keep you posted

bonyn

What's the possibility you could enter the same area and poach the investor instead? Just curious