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I was just asked about a particular startup situation (seed stage, CMO hire, non-founder) and particularly what compensation and equity is appropriate. Quick & Dirty How-To: Employee StockOption Allocations Seed Stage Compensation What are typical compensation numbers?
This week they set out to create their cap table and hire a CTO. The vesting schedule protects each of the co-founders in case one gets hit by a bus or decides to drop the project after a short period of time. Jane and Dick want to bring in their friend Praveena as CTO, but they don’t know how to structure the compensation.
Finding co-founders is hard, and I would never recommend to hire a co-founder – usually you start a business with people you know for years (as there is already an existing level of trust there and you also know they are capable of fulfilling their duties). They should be able to hire great designers to help build a better product.
I was originally hired as a contractor, developing a SaaS app from scratch, including DB design and coding. Along the way, I was hired full time (I believe about 8 months after I started), a coder from India was hired and another contractor was added to the team. omissions/lies on the part of founders & investors. .
For example, below are the 2008 results for average equity granted at time of hire in IT companies: CEO 5.40%. Head of Technology/CTO 1.19%. Tags: Stockoptions. The 2008 results are available on Altgate and are also embedded below. President/COO 2.58%. Head of Engineering 1.32%. Head of Sales 1.20%.
Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation StockOptions Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? If your question is available, choose it from the list. Founder or employee?
Inevitably, the excuses begin: I need to hire people to build the product. In later posts I’m going to get into more detail on specific topics like hiring, raising money, what types of ideas have the potential to get big, finding your founders, and the like. Like I said, forget everything else and just get your product out the door.
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