[tptacek]

Equity splits have at least as much to do with risk as they do with contribution. But it's risk in a more general sense; you don't get compensated for being so financially insecure that the venture might wipe you out completely. Instead, it's "risk" that captures opportunity cost.

Unfortunately for the poster, despite the fact that his prospective partner already has a well-paying job, his risk in starting this company could be higher, because the opportunity cost to an established CEO of joining on with an unproven venture is very high. CEO's tend to "trade up" to other CEO roles at established companies.

[trueneverland]

I think doing a startup is risky for a lot of people in general. Comparing risk in the manner the OP did is poor. I think to succeed you have to have a certain level of risk tolerance. There are a lot more things to consider and compare than who risks more financially or in opportunity cost. Getting into a startup requires more commitment than that in my personal opinion.

Now if you're talking about risk appetite in doing things and jumping into a startup, then I'd agree risk is a factor worth taking note of.

[tptacek]

"Contribution" can actually be measured in terms of risk; the risk is the opportunity cost of the value of that contribution to any other business you had the option to be a part of.

Risk is more important than your writing seems to indicate. Equity isn't an achievement award.

[trueneverland]

I think you read my comment wrong then. I never undervalued risk in any way. I agree its one of the most important factors. But I think the type of risk is more important than what you lose out on as opposed to the other guy.