We are a startup with some initial commercial success. We have committed to negotiate some shareholding % with our first employee who was an important developer to get the product off the ground. How should we approach and prepare for this negotiation?

If this employee is important for you, my suggestion would be to discuss it with him, to share with him your thoughts and to agree together on the stake. It is so valuable to put the employee, especially in early stage, in the loop. It will make him more involved and he will appreciate you. Of course, come to that meeting with a range of % you are willing to give.
We can continue our discussion and share with you my last experience which was the same.

Answered 3 years ago

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