Compensation Design Best Practices at Startups

Learn how to build the most adapted compensation plan for your startup from the best practices on the market

best practicescashcash managementcommon mistakescompensationearly-stageequitylaunchstartupsstrategy

"Few topics are of higher interest and concern amongst startup management teams than compensation. Surprisingly, however, there has been relatively little written on this subject.

In early stage startups and venture-backed companies, this issue has special significance because cash is scarce. Mistakes early on can doom a startup. As a company evolves, equity becomes more valuable and the design of a compensation scheme needs to become more scientific and thoughtfully planned.

First we will cover cash compensation. Then we will cover equity compensation (including new hire as well as retention or evergreen grants). Finally, before offering some concluding thoughts, we provide a library of best practices and common mistakes to avoid."

- Ali Rahimtula, Anthony Tjan, Dick Harrington (

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