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Jon Pierce
Re: Employee Equity: How Much? - http://www.avc.com/a_vc...
"Totally agree on the basic framework. But using salary as the basis seems unfair; startup salaries are usually reduced significantly, and sometimes the most senior people make the least. So this method double penalizes them. Instead, you could substitute their "market salary", or you could just take the difference between what you'd expect their total comp to be down the road (i.e. when the company is thriving) and their present comp and use that as the basis for the grant." - Jon Pierce