Equity for a first employee
sganesh: Depends on the pay. If you're paying market, < 1 %. If you're not paying market, match the difference to a max of 3%. Either way, make sure it is vested 1/36 every month for a period of 36 months. But if you get bought out, or go IPO before that time frame, make sure all of that is vested. And also, if you get funding that pays out the founders in some way, find a way to pay something out to the employees too.