STRe Solutions Summer 2012 Newsletter Header

In This Issue

Comparison of VC Fundings from August 2011 to August 2012. full article
Preparing your company for an IPO. full article
This quarter the STRe Solutions team discusses issues related to situations where a candidate's compensation is above the range for a specific position.
Candidate Tip #119  Hiring Manager Tip #119   full article
Cynthia Neuwalder, former NASDAQ Managing Director, Joins STRe Solutions. full article
Silicon Valley Reality. full article


STReWay Summer 2012 Newsletter

There's lots of buzz about the venture industry and IPO exits these days. It seems fitting to share a recent observation from Bob Karr, CEO of LinkSV. In August 2011 there were 42 VC transactions and 70 in August 2012, an increase of 66.7%. If you are not already a member of LinkSV ( you are definitely missing important information about Silicon Valley.

Recent Articles/Blogs of Interest

Are IPOs back?

Preparing your Company for an IPO
While this is written for software companies, the advice is good for any company planning an IPO:

How to leverage what VCs are looking for in a startup to determine success and use that info to find your own next successful company:

Candidates and Hiring Managers: Maximize Your Experience with Recruiters

Our highest priority at STRe Solutions is building long-term relationships with both jobseekers and hiring managers. The Recruiter Relations section of our newsletter offers ongoing tips to help you maximize your experience with a recruiter, regardless of whether you're seeking top talent to seamlessly join your team or searching for your next ideal position.

A topic that comes up frequently is compensation. As a hiring manager (or Human Resources professional) you can look at Radford data, but what is the right salary range, what fits in your budget, how do hire top talent and still keep equity in the organization? As a candidate how do you know what the right number is for you? Tips in this issue address the case where the candidate's ideal compensation is above the range for the position.

Candidate Tip #119

How can I demonstrate my willingness to take a pay cut to advance my career?

Once upon a time in the land of changing jobs a candidate could expect a double digit increase just to move to another company. Not so in recent times, especially in today's economy. Compensation is all about value, and fairness. If you work in a large company, public or private, your salary is probably on the higher end of the scale, and you have good benefits, maybe some interesting perks, like discount passes to Disneyland. Small start-up companies typically pay less cash with the promise of equity that will be worth something, maybe.

As you evaluate an opportunity, compensation is just one factor, and it could be a very important factor as you need to be able to pay your basic expenses and support your family. Let's assume that you can afford to take a pay cut. Now the intangible parts of a job come in to play. If you will gain valuable experience, work for a fabulous start-up, or get your dream job, you may want to consider taking a cut in salary. You might be able to negotiate a bonus based on your performance so that your total cash for the year would be comparable to where you were.

Hiring Manager Tip #119

Should I hire a candidate whose prior compensation is above my range?

Clearly the risk of hiring a candidate who is accustomed to a larger salary is that they will leave at the first opportunity they get. But, money is only one factor when candidates look at new jobs. If the candidate is truly overqualified then no matter what you pay them, they are not a good fit, e.g. hiring a Manager who has been a Vice President in their last job. That is too much of a stretch. On the other hand hiring a VP from a small company into a Director position at a larger company is probably OK.

If you find a candidate who meets your requirements and is a good cultural fit, you don't really want to toss them out with the bath water. There may be reasons why the candidate is prepared to take less money. Your location may be a desirable commute, your industry gives the candidate an opportunity to learn a new area, and this position may offer the candidate the opportunity to obtain skills they need to grow their career.

STRe News

Former NASDAQ Senior Managing Director, Cynthia Neuwalder, Joins STRe Solutions

STRe Solutions welcomes Cynthia Neuwalder as an Executive Recruiter. She holds an MBA from Columbia Business School, and a Master of Liberal Arts from Stanford University. Her undergraduate degree, in cultural anthropology, is from the University of Colorado. 

Her professional experience includes private, public and nonprofit organizations. She spent 6+ years at the NASDAQ Stock Market, in their New York headquarters, on the NASDAQ 100 team as a Senior Managing Director. Cynthia moved to the Silicon Valley in 2000 and has since worked in marketing at an AMLAW 100 law firm, as a development officer at Stanford Medical Center, and in business development for a financial public relations firm.

Cynthia is on the Board of the Bair Island Aquatic Center (BIAC), and serves as Treasurer. She is a member of the advanced women's racing team and enjoys sweeping and sculling on the Bay. Cynthia is also an avid scuba diver and cyclist.

STRe Fun - Silicon Valley Reality

New reality shows are popping up this fall, and now Silicon Valley may be starring.