Demonstrating the potential value of startup equity early is hard. Especially early employee, non-founder equity. But having a framework for it is key to hiring great talent. If you can explain it in a clear, concise, and complete way, with an explanation of the variance of inputs, it builds trust with new hires and sets the organization up for long-term success.
The approach I love most is from my friend Dhruv Vasishtha, formerly at firsthand, laid out in detail here. He first shared this publicly back in 2022, but it’s a timeless approach that covers all the key variables.
Enjoy!