Engineering Your StartUp, by Mike Baird ISBN:1888577916

http://eysu.org/

Stock allocation

• note he assumes there's a single founder who funds the early operations; then there's a VC "expansion financing" period, and then IPO/acquisition

• after expansion financing done, stock should be roughly 60% investors, 20% founder, 20% founding team and other employees

  • of that last 20%, there's often a factor-of-10 in portions based on level - e.g. the [CLevel] folks each get 10x what the managers get, who get 10x what any staff get.

So I did a little calculation to see how that works out per person. I assumed core [CLevel] team of 4 (not counting founder/CEO), each having 2 managers, each of those having 4 people.

Tier	Num people	Shares /person ratio	Shares /tier portions	Total portion /tier	Total portion /person
c-level, co-founders	4	100	400	15.63%	3.91%
mgrs	8	10	80	3.13%	0.39%
staff	32	1	32	1.25%	0.04%
Total	44		512	20%

I can't swear that's what he had in mind, because he doesn't seem terribly precise/consistent across various parts of the book in distinguishing key founder from CEO from founding team from top-mgmt from middle-management (and I'm not sure how much middle-management there should even be at the VC stage). So my interpretation is that there's a single key founder who is also CEO - he gets the separate 20%; then all the other employees, including founding team, split the other 20%.

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