Frankly speaking, it would be much better if you chalk it out yourself. Unrealistically low levels of cash compensation weaken their ability to attract quality managers. Unrealistically high levels of cash compensation can turn off potential investors and, in extreme cases, threaten the solvency of the business. There is simply no way that a company just developing a prototype or shipping product for less than a year or generating its first black ink after several money-losing years of building the business can match the current salaries and benefits offered by established competitors. Without an entrenched personnel bureaucracy and long-standing compensation policies, it is easier to tailor salaries and benefits to individual needs. Second, be thorough and systematic about analyzing the options. Compensation and benefits plans can be expensive to design, install, administer, and terminate. Start-ups should evaluate compensation and benefits alternatives from four distinct perspectives. Survival is the first order of business for a new company. Even if you have raised an initial round of equity financing, there is seldom enough working capital to go around. Cash compensation must be a lower priority. Despite this awkward tension, marshalling resources for pressing business needs must remain paramount. Certain approaches, like setting aside assets to secure deferred compensation liabilities, require that executives declare the income immediately and the company deduct it as a current expense.
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