Also, you may want to consider including vesting provisions in the new hire's compensation agreement. http://en.wikipedia.org/wiki/Vesting#Ownership_in_startup_

Also, you may want to consider including vesting provisions in the new hire's compensation agreement. http://en.wikipedia.org/wiki/Vesting#Ownership_in_startup_companies http://en.wikipedia.org/wiki/Vesting#Ownership_in_startup_co... If you decide to offer an 8% equity stake, then you might, for example, want a 2% stake to vest each year for 4 years.