Need help! Negotiating long-term contract in real estate development [X-post from r/RealEstate]
For the last 27 months, I have been working for a real estate development company buying restoration properties in a UNESCO World Heritage designated site.  We represent several different investor groups.  We identify the acquisition targets, negotiate the purchase, secure the bank financing, develop plans and obtain all approvals to restore the building, oversee the construction, and then manage the properties as rentals.  The idea is to redevelop &amp; manage the properties for the next several years, and sell the entire portfolio sometime in 2020 or beyond.

I was the first employee (hired December 2012), and I have built my team of about 10 people.  I manage all day-to-day operations, and I work with the managing partner (one guy, same for each of the portfolios) to steer the process from acquisition to redevelopment to leasing and property management.  So far, we have acquired about 38,000 m2 (construction) across 18 buildings.  

We currently have approx. $20MM in equity financing.  According to our cash flow projections, we will achieve a balance of approx. $32MM debt by 2020 (currently $7.7MM).  Gross rental income projections by 2020 are approx. $7MM per year.  Maybe we are selling the entire portfolio then based on a 7% cap rate.

For the last 2 years they have been paying me $6,500 per month, and now we are now negotiating my long-term contract.   This is what they are offering:

* 2% profit sharing.  Equity does not start vesting until 2017 and based on the following schedule:
    * 2017:  .5% 
    * 2019:  .5%
    * 2020:   1%
* 2% option.  Based on 2015 equity amounts
* Monthly salary increasing per year:
    * 2015:  $7,000/month
    * 2016:  $7,500/month
    * 2017:  $8,000/month
    * 2018:  $8,500/month
    * 2019:  $9,000/month
    * 2020:  $9,500/month
* Annual Bonus Potential:  30% of annual salary based on a points system evaluation of 5 main areas of the job responsibilities.

This is a huge job with a ton of responsibility, and this company does not provide an easy environment in which to work.  I have learned a great deal over the last 2 years and I continue learning.  On the other hand, the job keeps me very far away from family, and I stay pretty stressed.  I am also probably picking up some undesirable work styles and habits from the company's managing partners.  

In general, I would like more salary + more equity + a faster vesting schedule.  The money they are offering is likely not enough to keep me here if I am not earning equity for the next 2 years.  And their objective is to keep me here for the long term, hence the delayed vesting schedule.  

I'd really appreciate some comments, thoughts, guidance here on how to negotiate this and protect my interests.  Fantastic if someone can speak from similar experience or industry standards, but any more general tips will also be greatly appreciated!

**I'll close with a more specific question.**

Based on: 

* the size of this portfolio of restoration properties (*&gt;38,000 m2*); 
* the value of the projects once completed (*restored individual unites currently selling as high as $3,500 per m2*); 
* the size of operations (*approx. 70k per month in regular operating expenses*); 
* &amp; equity (*$20MM*)... 

What is a fair base salary and bonus potential for the next 2 years before any equity starts to vest according to their offer?
[{"id": "cp49kek", "text": "What country are you in?\n\nEdit: What do your models project your portion of the profit share to be? Does this go into your equity stake? Looks like it might based on formatting. ", "replies": [{"id": "cp4b44h", "text": "Thank you for your comment!\n\nThese projects are in Latin America.  Based on current cash flow projections, I would anticipate the 2% equity compensation to amount to around $1,000,000 (sometime beyond 2020).  The 2% profit share would be about the same value, but would cost me approx. $400k.", "replies": [], "depth": 2}], "depth": 1}, {"id": "cp4xhpb", "text": "1st it's confusing how you worded it. Do you have 2 options? Equity vs. profit sharing? Are the salary increases and bonus related to both options or only one?\n\nFor equity:\nHow guaranteed is your exit?\nHow big are the projects risks?\n\nFor profit sharing:\nIs this paid out/accrued yearly? \nIs it based on operating profit and exit profit?\n\nYou also need to give way more details such as what is your risk profile? What is your background? Can they get a replacement for you easily? How strong is your negotiating position? How much do you need money right now? Are you worth waiting for a higher payout? Why don't you do a DCF on your options?", "replies": [], "depth": 1}, {"id": "cp57u6j", "text": "I honestly have no idea what the market is like in Latin America, so I can't comment on the level of the salary.  Considering the disconnect between the value of the equity you will be receiving ($1mm) and the salary ($80k - $120k), I would think they could afford to push that salary a bit though. Personally, I would go salary over equity because you aren't in control of when the properties get sold.  My company gives equity to the senior management on some of the deals.  Since we focus on value-add deals, those equity shares aren't worth much yet and don't generate much cash flow.  Salary is money in your pocket.", "replies": [{"id": "cp596p1", "text": "Whenever you see equity compensation much higher than pay in a small company, the boss doesn't have much cash...or expects to screw you later.  I know...im a cynic.", "replies": [], "depth": 2}], "depth": 1}, {"id": "cpiqfpe", "text": "No advice to add--only curious as to what your path was to such an interesting job. How did you do it?", "replies": [], "depth": 1}]