[sadface]

If the founders goals are to achieve a satisfying outcome ("financial security"), they would have to achieve a 2.5x bigger exit under scenario 2 than scenario 1. Andrew's new system retains scenario 1's "ease" of achieving a satisfying outcome for the founders while allowing the other employees to reap more of the benefits if the company grows further.

It's a structure supporting the idea that the first $X million are pretty important for the founders (or anyone, really) but the next $XXXm aren't as big of a deal and can be spread around somewhat, hopefully increasing the total number of people who hit $Xm within the company if it becomes huge.

I like the idea.