I'm working on an independent sponsor acquisition of a profitable professional services firm. The company has around a dozen staff, with the current owner-operator planning to exit over the next three years. We need to recruit a strong operator who can relocate to a geography that might be challenging for talent attraction and eventually take over leadership. The role also requires a specialized professional license.


Compensation Considerations:

Base Salary: To make the opportunity compelling, I’m considering a base salary in the $200K to $250K range, which is above the typical $170K-$200K for similar roles.

Equity Incentives: I’m thinking of offering traditional options that could vest up to 2-3% of the company over five years. However, I’d appreciate insights on structuring these options to align well with long-term commitment and company success.



Independent Sponsor Context: Since my economics are much more highly tied to the company’s performance (through a deal fee and carried interest/promote structure), aligning the operator’s incentives to drive success is crucial.


I’d love your input on:

1. Structuring traditional options in a way that supports retention and performance.

2. Creative ideas for incentivizing relocation, especially given the challenging location and licensing requirements.



Any advice or experiences you can share would be incredibly helpful!