What’s the best way to distribute company equity?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Options and Offer Letters – AVC

What I generally suggest is that management have a standard options grant. It could be as simple as “everyone gets at least 1000 shares when they join, important role players get 5000 shares, directors get 10,000 shares, software engineers get 10,000 shares, senior software engineers get 20,000 shares, VPs get 50,000 shares. C level gets 100,000 shares” I just made that up. You should make one that makes sense to you.

What’s the best way to distribute company equity?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Options and Offer Letters – AVC

I also suggest building an options budget. To do this you take your standard grant schedule, and then map it to your hiring and retention plan (I suggest granting options to current employees every two years as part of a retention plan) and then you will have an options budget for the next few years. That is a great thing to have.

What’s the best way to compensate your sales employee?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Commission plans — how to get them right | A Founder’s Notebook

The key is to sit down with finance, product and marketing with the budget in hand and ask the questions; what do we need to sell by the end of the year? Once the incentives have been nailed and properly aligned, make the plan dead, stupid, simple. A plan is simple stupid if a sales person knows exactly what they will be paid on a deal without looking it up. In addition, all plans must have accelerators. Accelerators are when more commission is p… (read more)

What’s the best way to compensate your sales employee?

David Sacks (CEO at Zenefits)
New Sales Models – David Sacks, Founder and CEO of Yammer – YouTube

50% base and 50% variable, assuming they hit their quota. Set their comission to 10% until their quota is met and then 15% once they’ve met it. Therefore their quota should be 10x their base salary (assuming the 10% comission rate).

What’s the best way to compensate employees?

Leo Polovets (General Partner @ Susa Ventures)
Analyzing AngelList Job Postings, Part 2: Salary and Equity Benchmarks · Coding VC

[from 2014] Assuming that a startup has two founders, here are some ballpark numbers for engineering job offers: Salary: For employee #1: 20th percentile salary range is $70k – $100k 50th percentile salary range is $80k – $120k 80th percentile salary range is $82k – $135k For employees #2 through #13, salaries rise for higher paying jobs: 20th percentile salary range is $75k – $100k 50th percentile salary range is $85k – $125k 80th percentile s… (read more)

What’s the best way to compensate your sales manager?

David Sacks (CEO at Zenefits)
New Sales Models – David Sacks, Founder and CEO of Yammer – YouTube

Set their quota to 80% of their team’s quota and give them 2. 5% comission. Then back into their base as 50% of OTE. So if their team’s quota is $4M then their base would be $100k (4M*2. 5%) and their comission potential would be $100k (50/50).

What’s the best way to compensate employees?

Aaron Patzer (Founder & CEO of Fountain, Mint)
Aaron Patzer lays bare Mint’s numbers – YouTube

My first engineer at Mint I paid $3,000/mo. That’s what I paid my second engineer as well. [They] got 2% and 1.5% equity. I hired my VP of Engineering who was [previously] making 180k for 90k but I gave him 4% equity.