[peach1800]

Hi all,

Like many here, my only goal after college was to get into Big 4. After the excitement wore off and I was working 70-80 hour weeks, I started responding to the recruiter emails. So lo and behold, I got an exciting offer with a start up (Silicon Valley) that includes a 29% percent increase in pay and equity with the company (hope to go public). Now I sit with the decision to leave public accounting with just about 1 year experience or stick it out until senior. I have the chance to be part of something great but fear better future opportunities with staying in Big 4.

Disclaimer:(I have one year accounting experience with a regional firm as well, so not leaving with no experience)

I would appreciate opinions!

Thank you

[tpeters321]

I would leave the Big 4 (overrated in my opinion) and try the start up if you can afford it.

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[Anonymous]

i would go- my cousin becamse a millionaire after leaving pwc to go work for a startup. they went public and he cashed out. cha ching$$$

YMMV

he left @ the senior level though- and youre leaving as an A2 i suppose

[CPA CMA]

I would. Big4 firms let their employees work their butt off and swallow most of the profit they make. They can always get more employees but you only live once.

Master of Professional Accountancy (MPA) 12/17/2014

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[jessica8926]

I would leave too. I left after 2 years and could not be happier. Sure you can stay get more experience but then you have to find a mundane job with a recruiter when you want to leave or work your but off even more at another job to get the pay you want. Like the others said if you can afford it and feel like the opportunity is a good one and wont flop I would totally go for it. From experience the longer you stay at Big 4 the more miserable you will get and you will regret not leaving when you had this opportunity.

PLUS life is all about taking chances in hopes they will pay off so I say go for it!! Good luck!

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[jessica8926]

I would leave too. I left after 2 years and could not be happier. Sure you can stay get more experience but then you have to find a mundane job with a recruiter when you want to leave or work your but off even more at another job to get the pay you want. Like the others said if you can afford it and feel like the opportunity is a good one and wont flop I would totally go for it. From experience the longer you stay at Big 4 the more miserable you will get and you will regret not leaving when you had this opportunity.

PLUS life is all about taking chances in hopes they will pay off so I say go for it!! Good luck!

AUD - 69, 77
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FAR - 75!
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IL candidate!

Finally done (5/24/16)!! Yahooooooo!

[acamp]

Allow me to play devil's advocate.

1. You are talking to a recruiter; of course they are going to tell you how wonderful of an opportunity this is.
2. 30% is an excellent pay bump, however, when your base is a staff salary, you are not going up THAT much in terms of total comp. It will fee nice initially, but where's it heading?
3. Every start up is going public or heading towards a huge buy-out (*wink*nod). My area of focus is emerging growth technology clients; many have plans/ideas for near-term public offerings, but they do not always materialize. I was on a client that was hoping to IPO in 2012… they're still private today.
4. Even if IPO, one of my clients had a very soft IPO and therefore only the earlier people in the Company (read: not staff accountants) cashed significantly. That is, if there is great certainty in going public, the Company is well past “giving away” shares; likely your option price will be much closer to the IPO price.

I would evaluate under the prospects of career opportunity/trajectory and not on the hopes and dreams of a huge IPO cash out (not to say that it can't happen, just, recognize the risk and uncertainty surrounding the equity side of the comp–what if comp was salary+lottery tickets? 😉 ). Were you able to lookup anything on the Company's most recent rounds of financing? When was the last round, if multiple rounds, is the valuation trending sharply upward, etc?

Note: I'm not necessarily suggesting you pass on the opportunity, just keep your professional skepticism hat on while you evaluate 😀

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[peach1800]

Thanks everyone for the comments! I am not thinking about joining because I am hoping for a big pay out. I honestly just think of the equity as a perk…its not gonna pay the bills now.

The reasons why I am excited for the position
1. Chance to help implement a new ERP system
2. They are beginning to implement SOX (something I am interested in)
3. Fun environment (the offices literally look like its out of a movie)
4. They have expressed lots of opportunity for growth and the ability to help on special projects

Keep the opinions coming! This is really helping

[fuzyfro89]

Always be skeptical. Is the company truly a sustainable and defendable business, or just another high flying startup? Even Linkedin and Twitter, several years into being public and many years into being companies, are seeing their equity crash because both are still barely profitable, or still losing money.

Not to say you should not take the job, but remember to put things in perspective. At the end of the day, will the EXPERIENCE AND SKILLS be a good selling point? Would you take the job thinking that ~2 years later you could move up outside the company?

Is it a 29% increase in your cash compensation, PLUS bonus/equity? If so, that's a very reasonable risk. Just don't get into the trap of equity being a gift and that it always goes up. It does not, even though recruiters and tech companies try to sell it that way.

Personally, if the risk/reward makes sense, then you're probably just fine. Just make sure your experience and skills will grow while you are there, so in the event the equity dries up or does not pan out, then you have something to fall back on to go forward.

Remember, and don't forget, that for every millionaire who made out big in a startup, there are at least 5 (if not more) who did not.

A quick google search will yield varying results, but all say the same thing… do your homework, understand the risks, and make a judgment.
https://www.quora.com/What-percentage-of-startups-fail

https://www.forbes.com/sites/neilpatel/2015/01/16/90-of-startups-will-fail-heres-what-you-need-to-know-about-the-10/#47622d855e19

[MaLoTu]

Are you currently working and living in the Bay Area? If not then there are other issues you have to consider, like is a 29% increase enough to give you a livable wage in the most expensive place in the country.

I would definitely put a lot of weight on the last 2 responses.

[peach1800]

Yes I already live in the Bay already so very familiar with the cost of living. Luckily, I am not in a position that I am strapped for money. I am doing well with my current salary so the increase would just make things better.

[Jdn9201]

Do it. You are young and it sounds like the equity piece is just icing on the cake. You don't want to look back years later and wish you had taken the chance, once you have more commitments. You can always go back to public if it doesn't work out.

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[Author]

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