Equity Compensation Master - Carnegie Mellon University

Equity Compensation

Rules of thumb, guidelines, conventional wisdom & other considerations

Frank Demmler

Founders' Pie

Getting started correctly is critical!

Founders' Pie

Conventional Wisdom

? Count the number of founders ? Divide the number of founders into 100 ? That's the "fair" percentage for each founder

Founders 2 3 4

Percent 50.0% 33.3% 25.0%

? Frank Demmler 2013

All Rights Reserved

3

Founders' Pie

Conventional wisdom is wrong, and could be fatal

? Frank Demmler 2013

All Rights Reserved

4

Slicing the Founders' Pie

Frank Demmler

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