How can we Find and Hire a great CEO with equity compensation?

Question

Where should we look for a talented CEO for a great start up company who will work for equity compensation? How might this compensation plan be structured for immediate and future growth?

Answer 1

Depends on what business you are in and the structure of your business.  Can I assume that you will be coming out with an IPO and be publicly traded?  If so, then the equity compensation would be in the form of stock options.  If the company is private then the compensation would be in ownership interest.  You will need to answer these questions for somebody to show interest in such a job.  I would recommend that you look at some of the brightest young people in the field your business focuses on and offer them " the opportunity of a lifetime"  they are far more likely to bust their rump for a potential windfall then somebody that is already established.   Look on monster.com and careerbuilder.com for resumes that fit your needs and then proceed to interviews.

Structure of the plan would depend on both current status and future plans.  If you are private now but want to work toward going public eventually, then you will have to write into the offer an exchange of ownership interest for stock options at that time.  If you are publicly traded currently, then you will want to structure the deal with stock options now with stock bonuses for performance.  The whole thing could get quite tricky, as the contract itself is likely to be very wordy to protect the interests of both yourself and the CEO.

Good Luck to you.