What’s the best way to retain employees?

Bart Lorang (Founder & CEO of FullContact)
Paid Vacation? Not Cool. You Know What’s Cool? Paid, PAID Vacation

Once per year, we give each employee $7500 to go on vacation. There are a few rules: You have to go on vacation, or you don’t get the money. You must disconnect. You can’t work while on vacation.

What’s the best way to preserve your healthy company culture?

Ben Horowitz (Co-Founder & Partner @ Andreessen Horowitz)
How to Minimize Politics in Your Company – Ben’s Blog

Performance and compensation— This doesn’t mean that they don’t evaluate employees or give pay raises; it just means they do so in an ad hoc manner that’s highly vulnerable to political machinations. By conducting well-structured, regular performance and compensation reviews, you will ensure that pay and stock increases are as fair as possible

What’s the best way to distribute company equity?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Employee Equity: How Much? – AVC

For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. Getting someone to join your dream before it is much of anything is an art not a science. And the amount of equity you need to grant to accomplish these hires is also an art and most certainly not a science.

What’s the best way to distribute company equity?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Employee Equity: How Much? – AVC

Here are our default brackets: Senior Team: 0.5x Director Level: 0.25x Key Functions: 0.1x All Others: 0.05x Then you multiply the employee’s base salary by the multiplier to get to a dollar value of equity. Let’s say your VP Product is making $175k per year. Then the dollar value of equity you offer them is 0.5 x $175k, which is equal to $87.5k. Let’s say a director level product person is making $125k. Then the dollar value of equity y… (read more)

What’s the best way to distribute company equity?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Employee Equity – AVC

Where Andy [Rachleff] and I differ a bit is how to calculate how much equity should be granted. Andy suggests using market comps. I don’t like doing that because 0.1% of one company can be worth a lot more or less than 0.1% of another company. I prefer to issue equity based on a multiple of current cash comp divided by the current valuation of the business. I lay that all out in my Skillshare class. While I don’t call out promotion and performan… (read more)

What’s the best way to distribute company equity?

Sam Altman (President at Y Combinator)
Employee Equity – Sam Altman

Startups should give employees more stock. Value is created over many, many years. Founders certainly deserve a huge premium for starting the earliest, but probably not 100 or 200x what employee number 5 gets. Additionally, companies can now get more done with less people.

What’s the best way to distribute company equity?

Babak Nivi (Co-founder of AngelList and Venture Hacks. Previously, he was an entrepreneur-in-residence at Bessemer Venture Partners and Atlas Venture.)
Are founders really 1000x more valuable than employees? – Venture Hacks

Is it fair for founders to own about 100% of a startup while employee #1 only owns a few percent? Are founders 10-1000x more valuable than employees? The answers are: Yes, it is fair. Value doesn’t matter, timing does. When the founders start the company, it is worth approximately $0. So their equity is worth $0. Let’s say the founders work for 6 months, make progress, and then raise money at a $10M post. Then employee #1 joins and gets 1% of the… (read more)