Here are excerpts of responses from this group of senior human resource leaders: [ExecuNet members can read the discussion in its entirety in the Roundtable archives.]

• "This is relatively standard for a start-up company, and the risk you take is tied to the rewards, so you can make a considerable amount of money or go bust. If you have a sizable savings and are relatively young in your career, this could be a fantastic career and financial opportunity."
• "I would proceed cautiously with this offer — you may want to try to negotiate the terms without jeopardizing your relationship with the potential employer, and 'balance the risk' by increasing the base or the bonus opportunity, and limiting the employment agreement to no more than two years."
• "You should know in advance what the timetable is for taking the company public because it is then that your options will have value. The other concern is the vesting schedule — the sooner the better."
• "I would request a minimum guaranteed compensation in case the performance component does not pay-out."
• "My first thought is that you might want to have a good employment attorney review the agreement before you sign it."

ExecuNet’s market intelligence research on compensation packages found that one-third of senior-level executives received employment contracts with their offers, with an average term of 2.6 years.