2 ms·
Not all all!. It strikes me that your employee - if anything - is too reasonable. It seems you're asking him or her to: - Take a salary at substantially under
by jusben1369 14y ago
Not all all!. It strikes me that your employee - if anything - is too reasonable. It seems you're asking him or her to:
- Take a salary at substantially under market
- Take a chance on a startup that has very little traction (just yet)
- Move countries/locations
If I understand it correctly or they are asking for is a very clearly defined "If it all works out then in 6 months I want x% of the company" Seems super fair.
My only counsel - and I think this works for both sides - is a minimum and a maximum range. For example no less than 4% and no more than 10% depending on how you perform. This works for both parties. If they're good but not great you can have the conversation after 6 months "We want to keep you on and around but not at 10%. Here's the non emotional, rational reasons why 4% is the amount we are comfortable to offer" If 10% is hard coded into the agreement you might have to cut someone who can otherwise be a valuable member because they're not worth "that much" That helps you and OP. Secondly, if gives them super motivation to contribute as much as possible during that 6 months to maximum their %.
One final note. What happens if you can't raise any more money for 12 months. Funding is a beast. Have you built that possibility into the dialogue anywhere?
Good luck!