[ulfw]

The founders usually put money in and don't get a salary. The early employees put nothing in, but get (a lower than market) salary. I am not saying the percentages are okay, but that's usually how it's rationalised. Of course this doesn't apply to Silicon Valley bubble companies, where you might raise $1MM+ on day one, put zero money of your own in and pay yourself a salary as founder from Day one. Hard to argue then that you deserve a 30x equity differential from your first employees.