Management Equity Compensation Benchmarks
I'm often asked by entrepreneurs for equity compensation benchmarks. They want to know how much equity they should give a COO, a VP or a CEO. Understanding these numbers is important for sizing an option pool and important for creating compensation plans for new members of the team.
Wilson Sonsini Goodrich & Rosati, a venture law firm, recently published the results of a study on the typical equity compensation packages for key managers after a Series A investment. These numbers provide pretty useful guidance not only for compensation at the time of the Series A, but also for compensation at the Seed or Series B round as these metrics can be adjusted for likely dilution to back into a benchmark for equity at the Seed stage or otherwise.
It is worth noting that these numbers are not the end-all be-all for equity compensation. They might fluctuate as market dynamics change and may not be representative of the entire market. That said, they should provide entrepreneurs with some directional guidance.

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