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Give them tiny percentages that are only worth a lot if the company is a big success. That means maybe 2.5% (with vesting) for an amazing person. If someone tak
by staunch 16y ago
Give them tiny percentages that are only worth a lot if the company is a big success. That means maybe 2.5% (with vesting) for an amazing person. If someone takes over most of your job (and does it better) maybe you'd give them 5%-10% but that's a very extreme case. Most people should be getting 0.15% - 1.5% depending on their contribution. You don't necessarily have to decide up front. You can start people low and award options for performance.
Plan to distribute at most 20% of the company to employees over the next 5-7 years.
- lsc 16y ago>Give them tiny percentages that are only worth a lot if the company is a big success. Is it possible to get good people who have other options for 1/4th what they could regularly get plus what amounts to a few grand worth of equity? It doesn't seem like a very good deal for the employee, really. (seems like a fine deal for me if I could pull it off... but I'd laugh at you if you made me that offer. Sure, pay me market rate plus some tiny bit of equity, that's fine... but if you expect me to work for peanuts, I expect serious equity.) edit: thanks for engaging with me on this; It's good to hear another perspective, I mean, mine is likely wrong. But I think that I might be trying to apply equity rules that make sense for "get big or die" businesses to a lifestyle business that only needs to double a few more times.