2 ms·
One other thing to consider, besides the rational aspects to equity assignment, is fairness. People will talk about their equity allocation sooner or later and
by mv1 15y ago
One other thing to consider, besides the rational aspects to equity assignment, is fairness. People will talk about their equity allocation sooner or later and if there is a major differential between people who perceive themselves as similar (e.g., similar skills, similar job, came on board around the same time), it could hurt productivity and morale. People know the world isn't fair but they still get angry/demotivated when they are on the wrong end of the perceived unfairness.
- ericmsimons 15y agoThanks for the heads up - this is a really great point :)
- vgurgov 15y agothis is brilliant point that many founders underestimate. fairness and motivation. it happens left and right when inexperienced tech founders just "calculate" equity. it might be calulated 100% corectly and co-founder might agree with it, but something will "not feel right" for him and greatly affect his performance. please pay attention.