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

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.

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.

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

It's common for technical employees to receive significantly less equity than their non-technical counterparts, which can lead to feelings of being ripped off.

Dynamic equity agreements can be confusing and demotivating; founders are more motivated when they know exactly what equity they have from the start.

Before distributing equity, consider how many people you need to hire and how much equity you plan to allocate for their compensation. The first employee at a traditional Silicon Valley startup typically receives between one and two percent equity.

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

Early employees should receive more equity than those who join later because they take on greater risks and work harder in a chaotic startup environment.