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MS

Michael Seibel

08/16/24

@ Y Combinator

Salary and equity should be considered separately; salary is for living expenses, while equity motivates hard work and commitment.

Video

YC

Co-Founder Equity Mistakes to Avoid | Startup School

@ Y Combinator

Co-Founder Equity Mistakes to Avoid | Startup School

08/16/24

Related Takeaways

TB

Tim Brady

01/26/21

@ Y Combinator

Different employees value equity differently; some prefer the certainty of a salary over the uncertainty of equity, so tailor your compensation strategy accordingly.

TB

Tim Brady

01/26/21

@ Y Combinator

It's sometimes beneficial to offer a lower salary in exchange for a higher equity stake, but not all employees may be open to this arrangement.

MS

Michael Seibel

08/16/24

@ Y Combinator

I should ensure that every founding team member receives a salary they need to live, while also providing them with equity to motivate their hard work.

MS

Michael Seibel

08/16/24

@ Y Combinator

Equity should be viewed as a tool to motivate the team, not something to hoard.

MS

Michael Seibel

06/07/19

@ Y Combinator

While equal equity splits are a common guideline, they may not always be applicable; consider the future motivation of your co-founders when deciding on equity distribution.

SA

Sam Altman

05/02/17

@ Y Combinator

Founders should continue to offer equity to employees throughout their tenure, as this incentivizes long-term commitment and aligns interests.

MS

Michael Seibel

06/07/19

@ Y Combinator

As a CEO, your focus should be on creating an equity split that motivates your teammates rather than just negotiating a deal.

MS

Michael Seibel

08/16/24

@ Y Combinator

When distributing co-founder equity, remember that most of the work has yet to be completed, so equity should motivate future contributions rather than reward past efforts.

SA

Sam Altman

07/30/18

@ Y Combinator

Most startups are not generous enough with employee equity, and you should demand fair treatment in terms of compensation.