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Employee Engagement

Im about to employ a developer,with salary sacrifice(4 year vesting,1 year cliff). what factors should I consider in helping decide the equity amount?

We are currently negotiating this. The business is making around $2000 profit a week. He is saying 10%, I'm more thinking around 5%. How do I know what would be fair? How is it calculated?

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Daniel Arroyo

Tech Entrepreneur. CTO at Astroprint.com

Check out https://angel.co/salaries

Pick location, market & role. There you can see equity given + salary.

There's a caveat though, if this is you first developer and he/she is going to be essential to your growth maybe you should consider him/her as a cofounder. Any tech business needs a tech cofounder in my opinion.

In that case, a much higher percentage than what you would see for employees should be given out.

Answered almost 11 years ago