Compensation Questions


2 Votes
0 Answers
3.66K Views
Common stock or stock options when getting a co-founder prior to seed funding?

I have built a startup in the last 2 years by myself and have a decent amount of traction. While going out looking to raise some seed capital, one the things that keeps coming up is having a...


2 Votes
0 Answers
765 Views
What's a reasonable "trial" project for a potential non-technical cofounder?

I have a software product which has been developed to the demo-able stage and I'm currently pitching it to potential customers. It's a B2B product, with a small number of big sales, as opposed to a...

asked Jul 18 '14 at 18:48
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Ben West
111 points

2 Votes
0 Answers
808 Views
How to calculate yearly raise for employees?

What process should one take to figure how much raise in salary to give to their employees?We are a small, but profitable company. It's our third year in business and both my cofounder and I have...

asked Apr 21 '15 at 10:57
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Kenneth Mc Cowan
14 points

1 Votes
1 Answers
369 Views
Should you compensate engineers on a sliding scale based on performance of the company?

It's standard to pay sales people based on performance. But should something related be structured for software engineers as well?What's a good way to structure performance based incentives for...


0 Votes
0 Answers
479 Views
Sales team compensation structure?

What are some good ways to structure compensation for your sales people? We have a SaaS product and here is the structure I've currently defined for sales people we'll hire: $30K base salary 10% of...

asked Mar 7 '14 at 16:24
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Juan Anderson
30 points

0 Votes
0 Answers
272 Views
How should I structure this deal?

I am running a small FMCG business. The products is in good demand in the market, but I am facing all issues of small business, such as capital shortage, no team. At present it not making money....

asked Nov 19 '13 at 17:01
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User29712
1 point

1 Votes
1 Answers
732 Views
How do you decide what salary to pay employees or partners when you first profit?

Suppose there is a situation like this: There are 3 people in a startup, the CEO, a partner, and an investor (very small angel). The investor does no work but has 7.5% equity and 7.5% net profit...

asked Nov 24 '13 at 09:06
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Goose
16 points

1 Votes
2 Answers
634 Views
Should I (cofounder) give up my voting rights?

I am a cofounder with shares that have voting rights. We have 3 founders - One with majority shares (a little more than the other two combined). I come from tech background while other 2 founders...

asked Aug 19 '13 at 05:48
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Santu
156 points

1 Votes
2 Answers
696 Views
Prefunded startup employee compensation

I'm going to be working for a startup that is prefunding. They have received a grant for housing and a bit more. I was wondering what I should negotiate in terms of salary and equity. I don't want...

asked Aug 25 '13 at 08:43
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Sean Fisher
108 points

4 Votes
2 Answers
4.3K Views
Equity for Startup Lead Developer/CTO (pre-funding, pre-launch)

Prerequisites I'm an experienced developer with broad knowledge of software engineering matters, having contacts in outsourcing companies and access to great talented tech people. At the moment I'm...

asked Jul 27 '13 at 06:00
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Vasily Ulianko
6 points

1 Votes
1 Answers
402 Views
How do I handle compensating a non-member of an LLC for IP?

My partners and I are in the process of forming an LLC for our startup. We're admittedly pretty new to this, and I'm confused about how to handle compensations for some IP a non-member contributed....

asked Jul 30 '13 at 23:28
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Samuel Kordik
6 points

1 Votes
1 Answers
360 Views
Equity / vesting / cliff explanation?

Can someone confirm that I understand this right: If I offer the following to an employee: 10% equity, vested over 5 years, 1 year cliff it means: If I fire them or they quit before 1 year, they...

asked Aug 5 '13 at 15:52
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Steve
310 points

1 Votes
1 Answers
923 Views
Accepting stock options from another company while in H1B

I am currently working for a company and I'm on an H1B. I know that I cannot accept compensation from any other employer but the company that filed for my visa. What if another company grants me...

asked Jul 17 '13 at 09:35
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Gevorg
106 points

1 Votes
1 Answers
312 Views
Royalties as a means for acknowledging founders

I am in the process of establishing a business with four partners. Initially the shares were going to be split between the four partners but now it is clear that the majority of the work will be...

asked May 9 '13 at 00:20
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Ruth Stewart
6 points

0 Votes
1 Answers
434 Views
What is a good cash/equity mix for a 1099 programmer and/or designer for 4 to 6 month term?

We have been coding now for about 6 months on our startup. Up until now, we have bootstrapped the entire project on pennies, being cash poor. Fortunately we were able to raise a small friends and...

asked Apr 10 '13 at 05:44
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Derek
164 points

0 Votes
3 Answers
435 Views
Startup employer asking for w-2

I had an interview at a startup and things went well. The HR called me later and asked me what my expectation of salary was. I then told them what I was expecting. A week later, they came back...

asked Mar 15 '13 at 13:30
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Montage9
1 point

3 Votes
2 Answers
491 Views
It is common for salaries to stay below market rate even after an initial venture round?

I am employee #1 in a startup with some substantial equity in it. Our startup was funded by angel money and I have worked from the beginning for a salary way below market rate. Now, venture round...

asked Mar 17 '13 at 02:55
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User25504
16 points

0 Votes
0 Answers
449 Views
Fair equity/cash for one year's contribution?

So I asked a broader question on this situation before, but am now trying to narrow it down to the core issue after negotiations failed yet again with my co-founders. I am a tech guy who joined a...

asked Feb 27 '13 at 04:37
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User25060
6 points

1 Votes
3 Answers
447 Views
How should we compensate a non-founder in a new web-based business who is critical to the launch of the business?

We are in the very early stage of organizing and launching a new web-based business. There are two co-founders - one who is CTO and one who is CEO. In addition, we will be including a third person...

asked Feb 15 '13 at 02:15
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User25024
6 points

1 Votes
2 Answers
914 Views
How much equity for co-founder reducing role for academic program?

I'm a technical co-founder in a pre-funding company in a niche tech segment, working with two non-technical co-founders who have largely overlapping skill sets. I met them at a networking event and...

asked Feb 17 '13 at 15:07
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User25060
6 points