Is it worth giving equity for salary and loyalty? What Framework do we use to validate giving equity to staff members?
Plenty of information out their that proves the best consulting firms use equity through share schemes to motivate the senior team. Just have to look at the big 4 accountancy firms as proof. If used wisely, share schemes can be a large driver of growth, as well as help you compete for senior talent.
A good rule of thumb would be to make available 25% of equity value beyond ‘founder shares’, to qualifying staff that seriously want to grow your business for you.
Start an equity scheme that shares increases in company value with those that help to create it.