Startup Compensation for a Web Engineer
I just joined a startup as a Web Engineer. There are now two founders and two engineers. The startup is in the Web 2.0 space, has only been around for a few months, and has no financial backing.
The two founders have allocated a million shares of stock. Both of them hold just under two-thirds of this amount and have planned for one-third to be given to investors. As compensation, they have offered me a complete stock package of 1.5% of all shares. The plan does not include a hourly wage or a salary. This type of compensation will be available when we get founding.
I`m new to this scene, so I have no experience to draw from and have the following questions:
* Does their stock allocation plan make sense to you? What is a common plan for startups?
* Re: my compensation, do I deserve more stock? If so, what do you think is fair?
* What kind of compensation package is typical for an engineer that hops on board very early on in the life of a startup?
Their math doesn`t add up to me. I feel that they should take a smaller percentage of all shares so that there`s a larger percentage to give to investors. I also feel like I deserve more than 1.5% of all stocks, especially when you take into consideration the number of investment rounds needed for a successful startup and the resulting delution.
Since I`ve never joined a startup before and have never been offered a complete stock package for compensation, I will appreciate all advice and comments.
digitalage3/5/2008 12:46 AM
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