How much equity should you give? - Deepstash
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How much equity should you give?

Equity offering needs to be adapted to your market, the profiles and company culture.

The equity package is depending on several variables, but it is mostly linked to the attractivity of your company, how strategic a position is, how hard a candidate is to attract and to retain:

  • the first few hires will get on average points of equity, 
  • C-level are given between 1 and 3 points, 
  • a board member should get between 0.25 and 1% 

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The general principles of equity awards

The general principles of equity awards

Giving equity to employees means making them shareholders, aka owners of the business. Some things to consider:

  • Cover the downside: schematically, equity should cover at least the opportunity cost taken by founders and employees when they accept a discount on the salar...

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The Layers Framework

As your company grows, you tend to add people in “layers”.

  1. The top layer is the first founder or founders. There may be 1, 2, 3, or more of you, but you all start working at the same time, and you all take the same risk.
  2. The second laye...

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How much equity should a company offer?

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