Article · 15 min read

A Counterintuitive System for Startup Compensation

Molly Graham · First Round Review Free Intermediate

A practical system for balancing salary and equity so comp stops being a recurring negotiation. It helps you decide how much equity an early engineer needs given the salary you can actually pay. The bigger the gap below market salary, the more equity you offer to close it.

  • Trade more equity when you cannot match market salary
  • A clear system beats ad hoc, one off compensation negotiations
  • Aim for offers people accept without feeling shortchanged on either lever
Open on review.firstround.com ↗

The question it answers

  1. What equity should I offer a technical co-founder vs. an early engineer?

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