An Introduction About How to Give Equity to Your Team
Startup Codex

This is a good introduction to the subject of equity for employees.

The article presents the different equity options: stock grants, stock options and stock warrants, as well as a description of the vesting mechanism.

Then it proposes a formula to determine the level of equity according to roles, inspired by Buffer's formula.

Note that if you are a founder in Denmark, Finland, Sweden or Norway, the site offers many resources specific to these countries.

No pilot flies alone and every plane needs a crew. Likewise, every founder needs a team to take their idea off the ground.

Yet, early stage startups often do not have the budget to hire a dream team. This is why startups often offer equity instead of salary to their first hires.

In fact, close to 20% of the jobs ever posted at The Hub offer equity as a form of compensation.

Moreover, giving out equity also works as an incentive. Having equity, in short, means employees are directly invested in the company’s future.

Yet, giving out equity requires careful consideration. You need to figure out how much equity you want to give out of your company and when.