Category Archives: Compensation

Understanding Stock Options

Alex MacCaw has a great post in his blog titled An Engineer’s guide to Stock Options that describes in plain English all you need to know about stock options as a member of a startup team. It’s pretty well explained going from shares versus options, exercising your options, what questions you should ask before joining a company offering stock to employees, and more. 

Check the full post here: http://blog.alexmaccaw.com/an-engineers-guide-to-stock-options

Understanding Visa Requirements for Startups

Adapted from Homeland Security by Phantamage @ flickrThis is a nice post from Chrisopher Golda on his blog, about Immigration Status for Startups.

He breaks it down into the best types of visas to get based on your role with the startup here in the United States, and explains why.

  • Founders  O-1TN or E-2 visas
  • Employees  O-1TN or H-1B visas
  • Interns  J-1 visa

Typical lawyers won’t be able to assist you with good visa advice, because it goes beyond the day-to-day incorporation, stock options agreements, and the like so doing some research and becoming aware of the different options you have as a Startup Founder or Employee is a good step to take. Worth checking out.

How Much Equity Should You Give?

Allocating equity among co-founders is typically a process, involving a lot of gut feeling, some back of the napkin math, and good judgement. Is also a frequently asked question with no easy answer.

So here comes a great new tool, built by Foundrs.com, called “Co-Founder Equity Calculator“. Based on simple but important questions, it gives you what it believes is a fair equity stake for each founder.

Even if you don’t agree with the results, is a great way to get a productive conversion started with the founding team on how to allocate equity fairly.

Try it out!

C-Founder Equity Calculator by Foundrs.com

C-Founder Equity Calculator by Foundrs.com - Click to Use

Equity Compensation in Startups

All startup founders face this issue. You sit down at the computer and start Googling away helping you’ll find a clue about how much equity to give to an employee. Bootstrapped companies are the more interested in the answer since using equity is a great way to save some money and get people committed. Or is it? Many have tried to answer the question but it keeps coming back over and over again.

So here is  a short list of helpful resources that will hopefully serve as a guide to helping you figure this out.

I hope the above resources help in your search for the right compensation structure for your employees.