Main distribution basis:
1. If someone provides financial support for your company, then he should get equity. Because in the final analysis, the role played by the founder of the cash-out company is no different from that of the seed round investor. Like everything else, this means that the 50/50 share allocation may need to be adjusted.
2. If the founder of a company invested $654.38 million+in original capital, this money may account for 20% of the valuation of a seed company. Then, a fair share distribution should be close to 60/40, which will be beneficial to the founders of the companies that provide funds. Try this calculation: dilute the initial 50/50 equity allocation by 20%, so that the financial equity allocation is 40/40, and then distribute this 20% to the founder of the company who originally provided funds.
3. The key senior managers of the company should get more equity than the non-key senior managers. Therefore, for example, the CEO and CTO of a company should get more shares than an office manager or graphic designer. Here, the author takes the whole company as an example, and then distinguishes it according to the employee level. Then the equity distribution should be as follows: the "chief" executives of five companies each get 10% equity, the 10 vice-president executives each get 2.5% equity, and the remaining 25 executives/managers each get 1% equity. This adds up to only 100% equity. You must understand that these can't be transferred in one day. You should appropriately buffer the equity according to the size of the employee group, so that in the short term, everyone will get a higher share of equity.
Legal basis: Article 3 of the Company Law stipulates that shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.