As we bring on new employees at my new venture, I’ve been struggling with the question of how much equity (shares) should I give a new employee or partner.
I’m not alone. It’s one of the most frequent questions in start-up forums – and it’s doubly complicated when the company is young and according to typical financial assessment the shares are “worth nothing?”
The question gets even muddier when the new hire is getting a salary. Typically that salary is less than market with the balance given in the form of equity, but again how do you compute that when the stock is, today, of no value?
To read the full, original article click on this link: Cash vs. equity: The compensation conundrum | VentureBeat
Author: Jason Cohen
