Is my job offer decent? I have been offered a job with a salary of $80,000 in acquisitions. But not sure about profit share....
I have been offered a job with a salary of $80,000 in acquisitions. But not sure about profit share. However, it’s a Resi developer who buys asset in the region of c. $3mn. The proposed bonus structure states I will be entitled to 10% of 20% of the company’s profits. They have given me any historicals but think they do c.$35mn of deals p/y and charge a 2% acquisition fee, but can’t really work out profits as when developments are sold there is a profit share as well and no idea about overheads etc. Been in biz for 10 years. Thoughts?
[{"id": "ik6e575", "text": "Ask the prospective employer the clarifying questions. What is your actual percentage of profit share, and what would the general net look like?\n\nJust ask them.", "replies": [{"id": "ik6m65p", "text": "This. They have the answers. We don\u2019t.\nEdit: sounds too good to be true. Why would they give away 20% of upside to a new hire? Not taking a shot at you, but seems like that would be \u201cearned\u201d not offered.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ik772db", "text": "At worst, their 2% acquisition fee on $35m works out to $700k/yr in fees.  If you\u2019re taking 10-20% of that it\u2019s approx $70-140k/yr in addition to your salary.  Right?", "replies": [], "depth": 1}, {"id": "ik89yj9", "text": "For clarity the bonus would be 10% of the 20% of the companies net profit. So if they make $1mn Profit I would get 10% of \u20ac200,000 so \u20ac20,000.", "replies": [{"id": "ik9d6e7", "text": "This will cause problems. I'm a RE lawyer and  I can very easily show whatever amount of 'profit' I want.", "replies": [{"id": "ikcylnz", "text": "Any advice on how it should be worded? Thanks", "replies": [{"id": "ikdj3wc", "text": "Pick a line from a GAAP accounting statement and say 20 percent of this number.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]