How much would you pay yourself as employee #1?

[zingzong]

I got an verbal offer to join a startup that just got accepted into YC. I have worked with the two founders previously and we have a good relationship. They have been interested in hiring me for over 6 months, so presumably they have either had trouble filling the position or they want me specifically because of the trust that exists in our relationship (or both). I would come on to fill a technical position.

I'm thinking of asking to get paid exactly as much as they are paying themselves (let's say $120k), with a lower stock package because I'm not a founder (let's say $80k). All three of us are going to pour the same amount of blood, sweat and tears into this so I think that's fair. What are your thoughts, Reddit? Thanks in advance.

 

[bluemoon01]

@zingzong Founders don't usually get paid much, typically well below market. They typically keep as much money in the company as they can to help it grow, with the idea that their main compensation comes when they exit. You're in a very different position.

Look up market comp for your role and stage. Optionally add on a premium for it being a short stint and if you're not getting healthcare / benefits. Work out an agreement in advance in case they want you to stay full time after. Understand how much risk you want to take in the form of salary vs. equity, and recommend a different weighting if you see fit.

 

[deecruz]

@zingzong Founders have a huge upside in case the company succeeds. They may be underpaying themselves.

 

[zingzong]

@deecruz Meaning I should ask for more than they are potentially paying themselves? Just give my number directly?

 

[deecruz]

@zingzong Correct. If you’re employee number 1, you should probably aim for 3-4% equity and a salary at market value.

 

[growingbygrace]

@deecruz It depends on who the employee no.1 is?

Normally they pay 3-4% if she/he is a specific person with a great background

Also, there's a red flag, they want her/him for over 6 months? why they should say over 6 months?

Also, if someone wants both equity and salary should accept a salary lower than regular salary