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?
How many other founders are there? Are any of them also developers? Is this developer a junior person -- or someone who could conceivably become your CTO? The answers to these questions are important, as they could dictate an equity stake of anywhere from 1% to 10% or higher. You also need to craft a vesting schedule (4 years with 1-year cliff is standard). Happy to discuss further.