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)