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by hyung 5741 days ago
"If the founders are the top managers in the company, then the typical "non founder employee ownership" will tend to be between 10% and 20%."

Does this mean that all the "non founder employees" would split the 10-20% of the equity?

2 comments

That is what he is saying, yes. Although I think this varies greatly with region, because in Toronto it is more like 4-11% for an ESOP.
"Employee ownership levels are higher in well developed startup cultures like the bay area, boston, and NYC. They are lower in less developed startup communities"
Yeah I saw that, I just wanted to give people an idea of how much it can range.
Yes, the "10-20% of the equity" is generally provisioned for the company's stock option pool.

This is definitely biased towards technology startups.