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My partner insists on a 50/50 equity split for every new hire, but I think it's killing our growth.
We lost a great candidate in Austin last week because she wanted a clear path to ownership, not just a flat share. I'm starting to think a tiered system based on role and tenure works better. What's your agency's policy?
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phoenixp306mo ago
I read a case study about a design firm that had the same problem with a flat split. They switched to a system where equity grows with both time at the company and job level. It made a huge difference in keeping people past the two year mark. Your idea about a tiered system is spot on, it gives people that clear ladder to climb. Sticking to a rigid 50/50 for everyone just ignores how much different roles actually contribute.
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ivancoleman4mo ago
Tiered equity" sounds fancy, but my tier is probably just a cupcake.
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river1836mo ago
That flat split is a big reason you lost that candidate. We used to do the same thing and it held us back. Now we have a four year vesting schedule with a one year cliff, and we grant equity based on the seniority of the role. It gives people a real reason to stay and build something.
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