If the person is getting proper salary — just a normal employee. 1% Equity if they prove that they’re highly interested in staying with the business long-term.
If the person is getting lower than market rates — 1-10% and possibly adding to the management board depending on how much of a hit on their salary they take. Their salary opportunity cost IS their investment in the business.
If the person is getting zero salary — 10-50% This is co-founder level.
How replaceable is he?
If the person is highly valuable to the organization, then it will be difficult for you to negotiate, but he will also be interested in the project continuing. If the person is replaceable, it may be easier for you to get what you want out of the situation. However, you may have to give a little more to make sure that he leaves on a good note and isn’t just looking to get under your skin.
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