You should be generous with equity to founders and early employees to foster a sense of ownership and commitment.

Founders should be generous with equity for early employees, as they are the ones who build the company over time.

Being more generous with equity for co-founders is beneficial, as it fosters long-term motivation to stay committed to the startup, especially during challenging times.

Equity splits should maximize the motivation of your co-founders to stay committed to the company over the long term.

When distributing co-founder equity, consider not just immediate contributions but also long-term motivation over the entire vesting period.

Equity should vest over time, meaning co-founders earn their shares gradually, and cliffs ensure they must stay for a minimum period to receive any equity.

As a CEO, you should aim for your co-founders' equity stakes to inspire them to work passionately, rather than having to motivate them daily.

Single founders should implement vesting on their shares to set a cultural example for employees, demonstrating that everyone is committed to the long-term success of the company.

I advise being generous with co-founder equity to motivate for the long term and to protect oneself in the process. Performance-based equity is a bad idea because it's difficult to set clear goals at the beginning of a tech startup, and those goals often change as the company pivots.