The executives hired by the company want to give shares in addition to salary. How much is appropriate?

How to give senior executives equity and consider the offer comprehensively. Start-ups usually start recruiting C-level executives in the B round. The following dimensions need to be considered:

The current valuation of the company;

At present, the proportion of shares obtained by the company's C-level executives, and the relative comparison between the proposed executives and the current executives in terms of ability and experience;

The current annual salary and equity of the senior managers to be recruited;

Cash compensation that the company can give.

Most of the C-level employees recruited at this stage will be granted restricted shares, and the proportion of shares will be adjusted according to the proportion of shares they are currently granted in other companies and whether they will be reduced in salary or not. The compensation substitution function of equity incentive is widely used in the recruitment process of C-level employees.

When granting shares to senior executives, you can refer to the common practices of the industry:

For VP-level managers, in view of the dynamic equity incentive mode adopted by the company, with the contribution of employees, the initial equity granted can be relatively low, ranging from 0.2% to 1%.

For core executives (CTO/CFO/COO, etc.). ), which can be awarded with reference to 2-3 times of the above VP standard.

For directors, they can be rewarded according to 1/2 or 1/3 of the above VP standard.