Tech and Life Science Compensation Trends

How should a company set equity grants when its valuation can triple or collapse in a single quarter? Two executive compensation consultants who advise pre-IPO tech startups and biotech companies explain how they build pay programs that hold up through big swings. Topics include setting grant guidelines by percentage of company ownership, communicating grants as a number of shares, and adjusting vesting schedules and retention grants in down markets. The episode also covers why tech pay bands are becoming more granular, how to explain stock options to employees, how growing companies choose compensation software, and why a 3 percent merit budget rarely does what leaders expect. Chapters 02:35 – Backgrounds in executive compensation and equity advising 12:02 – How biotech pay practices differ from general industry 13:49 – Using percentage of company to stabilize equity grants 15:03 – Why tech pay bands are getting more granular 16:36 – Communicating pay changes to data-savvy employees 17:50 – Switching between value-based and share-based grants 19:56 – Vesting schedules, cliffs, and off-cycle retention grants 22:54 – Explaining stock options and equity value to employees 27:17 – Choosing compensation software: platforms vs point solutions 38:16 – Why a 3 percent merit budget falls short