The right way to give equity to your employees

George Deebemployees, Entrepreneur, equity, startup

equity
As a rule, entrepreneurs are very protective of their equity, and try to keep 100 percent ownership for themselves.  Usually this is fine, provided that important key parties (e.g., employees, partners) are appropriately motivated to help you succeed. Sometimes that motivation comes in the form of cash compensation (e.g., lucrative sales commission plan, profit share plan), and sometimes that comes in the form of equity or equity linked incentives (e.g., stock, options, warrants). Motivating Employees For employees, my rule of thumb is to set aside 10-20 percent of the company’s equity for the key members of the team. You can…

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Source: The Next Web