I think in the earliest days, before you really have anything …
Equity can only be done based on relative fairness.
Yes, he wasn’t there on day 1. But he was on day 90.
So to me:
- Is he still really almost a co-founder? Or did you really do SO much value creation those first 90 days?
- Is he one of the 2-3 most important people in the company?
- Has he contributed as much or more than you?
- Will he contribute as much or more than you 2, 4, 6 years out?
If the answers are Yes, Yes, Yes and Yes … I think maybe he deserves an equal share, or something closer to it. If it’s Yes, Yes, Yes and Yes … 10% does sound about right to me.