Equity Structure & Performance-Based Vesting
Overview of Equity Opportunity
This role comes with an unprecedented equity opportunity—up to 10% ownership in the company, vesting over 4 years. This is an exceptionally large grant that reflects both:
- The early-stage nature of the company
- The extremely high performance expectations required to earn it
Context: Why 10% is Extraordinary
For perspective, typical equity grants for early employees (non-founder, non-C-suite) usually range from:
- 0.1% - 0.5% at Series A startups
- 0.5% - 2% at seed-stage startups
- 2% - 5% for very early employees in pre-seed companies
10% is founder-level equity. This reflects the expectation that your contribution needs to be at a founder level of impact.
Trial Period & Performance Requirements
Month-Long Trial (Current Status: Week 1 Complete)
The first month serves as an evaluation period to determine if this partnership can work at the level required. As outlined in the performance expectations, current performance needs significant improvement to justify this equity grant.
Vesting Structure
If performance requirements are met after the trial period:
- 4-year vesting schedule
- 1-year cliff (25% vests after first year)
- Monthly vesting thereafter
- Full vesting requires maintaining 8+ performance
Performance-Based Adjustments
The equity grant is not guaranteed—it's earned through consistent high performance:
- Below 8 average: Equity vesting pauses until performance improves
- Below 5 average: May result in termination of vesting/role
- Sustained 8+: Full vesting continues as scheduled
Why This Structure?
This equity structure is designed to:
- Reward exceptional performance that truly moves the business forward
- Ensure alignment between effort and ownership
- Create strong incentives for maintaining high performance
Next Steps
With 3 weeks remaining in the trial period, immediate focus should be on:
- Dramatically increasing output volume
- Improving execution speed
- Taking full ownership of responsibilities
- Proactively driving projects forward
Future Compensation
As the company grows and generates revenue, you will be prioritized as the first team member to receive a salary. This reflects both:
- The significant commitment you're making at this early stage
- The founder-level contribution expected from this role
The opportunity for significant ownership exists, but it must be earned through exceptional performance that justifies founder-level equity. The current trajectory needs to shift dramatically to align with these expectations.
