As the CEO or founder of a start-up company much of your success will stem from the treatment of your start-up team and early employees or partners. When people join your start-up it is often because they believe in you, your concept and the potential for success. When and if the company is successful, team members should benefit from the success in proportion to the effort they contributed to it.
If you have the money, you can simply pay them their market salary and they should be happy. If you don’t have the money you will have to cut them into the deal by providing equity that matches their contribution. However, deciding how to divide up equity in your early stage start-up can be one of the most difficult and delicate decisions you can make. No matter how you do it, there are long-term consequences that are usually uncomfortable. This is because start-up companies change a lot during their early formation and what founders think is going to happen rarely actuallyhappens. In spite of this, founders still make the mistake of dividing equity based on what they think (or hope) will happen because they don’t know how to divide up equity based on what actually happens.
To read the full, original article click on this link: Who’s the Fairest Start-up CEO? Ways to Divide Start-Up Equity : Under30CEO
