Re:Co-founder or employee?
by solofounder on Monday October 12, 2009 @07:19PM
(#877889)
You are right, I am not very business savvy, but I am learning along the way.
>Want some real numbers? At this point there are two choices: >a) Full Salary + 1-2% equity. or b) 8-10% equity vested over >4 years and minimum wage salary.
I have actually offered something roughly similar to option a) to several other promising candidates, but nobody was interested. I really need to hire another engineer, and I have already been searching for several months, and the search itself is a distraction, so I want to get it over with.
The other thing is that I have known and worked with this guy for several years, so I can be confident about his technical abilities to a greater degree than I can be about some random guy that I interview. Unless you have worked with somebody, you never really can tell how good they are, at least I can't. That's why I am willing to offer my friend a generous package with full salary and 5-10% equity. The way I figure, with him on board, the overall pie should increase by more than enough to compensate for the 5-10% equity that I would give him.
Re:Co-founder or employee?
by ersi on Tuesday October 13, 2009 @11:45AM
(#879303)
One thing worth considering is the relationship between you two, mixing friendship and business relationships can in many ways destroy you both and whatever you're building. Be sure of your roles. Be very clear with what your roles are.
>Want some real numbers? At this point there are two choices: >a) Full Salary + 1-2% equity. or b) 8-10% equity vested over >4 years and minimum wage salary.
I have actually offered something roughly similar to option a) to several other promising candidates, but nobody was interested. I really need to hire another engineer, and I have already been searching for several months, and the search itself is a distraction, so I want to get it over with.
The other thing is that I have known and worked with this guy for several years, so I can be confident about his technical abilities to a greater degree than I can be about some random guy that I interview. Unless you have worked with somebody, you never really can tell how good they are, at least I can't. That's why I am willing to offer my friend a generous package with full salary and 5-10% equity. The way I figure, with him on board, the overall pie should increase by more than enough to compensate for the 5-10% equity that I would give him.