How much fixed equity can I give to my workers?


Last Update 2 jaar geleden

Companies can give any amount of fixed equity that it deems appropriate. From the company’s standpoint, offering equity compensation for workers is really about incentives and motivation. You want to give the right amount of equity that would enable this. At the same time, you need to consider that any amount of equity you issue or offer will possibly lead to a dilution of the ownership interests of other stakeholders.

Hence, the ideal amount can vary from company to company. Some companies can do as little as 1%. At the other extreme, something as high as 50%. Commonly, we see companies reserving around 10-20% of their equity for workers and employees.

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