March 2015 Posts

Salary vs. Equity: How to Calculate Founder Compensation (Part 2)

Salary vs. Equity: How to Calculate Founder Compensation (Part 2)

In a previous post, we shared our approach to handling the salary variable in the salary vs. equity equation for compensating the entrepreneurs we select to be our co-founders. This week, let’s talk about the equity side.

Salary vs. Equity: How to Calculate Founder Compensation (Part 1)

Salary vs. Equity: How to Calculate Founder Compensation (Part 1)

Figuring out how to fairly compensate the founders we work with has proven to be a complicated question. We’re trying to strike a balance between providing a salary that makes it possible to live in Vancouver during early-stage development, and equity, which could someday represent considerable wealth, but won’t put food on the table in the short term. We’ll deal with equity in a later post, but for now I’d like to talk about figuring out the salary part of the equation.