What would be the range TC (base+equity) for early employees in Bay Area? Some information can be found here: https://www.holloway.com/g/equity-compensation/sections/typical-employee-equity-levels More specifically: Version 1 (by Babak Nivi): Chief executive officer (CEO): 5–10% Chief operating officer (COO): 2–5% Vice president (VP): 1–2% Independent board member: 1% Director: 0.4–1.25% Lead engineer 0.5–1% Senior engineer: 0.33–0.66% Manager or junior engineer: 0.2–0.33% Version 2 (by Leo Polovets): Hire #1: up to 2%–3% Hires #2 through #5: up to 1%–2% Hires #6 and #7: up to 0.5%–1% Hires #8 through #14: up to 0.4%–0.8% Hires #15 through #19: up to 0.3%–0.7% Hires #21 [sic] through #27: up to 0.25%–0.6% Hires #28 through #34: up to 0.25%–0.5% Do you guys think that this is aligned with the numbers in Bay Area? If a company offers a lower-than-market number quoting that this is given to previous employees, what are some techniques to negotiate an offer?
Ok well the issue is "Will this employee be able to handle the different task, will he be able to manage other people, departments, etc". Will you have enough stock to bring in a key hire even if he is employee 29. or will it be tied up with the first 20 hires Giving out equity based on the first employees is great if you know they can scale from start up to scale up
Thanks! @Startup777; do you think these numbers are aligned with what you observed?
The numbers are a decent guideline but all businesses/regions are different. The more important thing you should worry about is the structure if your equity agreement aka the "what ifs" 1 By default you should have a 4 year vesting with a one year cliff, else you risk someone leaving early with a percentage of your company you cant get back 2) If someone leaves after being vested do you have the option to buyout their shares so they dont sit on your equity? 3) Performance. Do you have an agreed upon dynamic contract that can changed based on the contributions of the person(s), especially since someone who was great at the start up phase may not perform as well in the scaling/mature stage. 4 Your investors can ask for the equity structure to be changed. I would HIGHLY recommend listening to the audio book called The Founders Dilemma, it covers all the do's and dont of forming a start up (and listen to it at 1.25x speed
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Are you factoring cofounders and investors?
I’m thinking of more focus on employees.