Ask HN: Appropriate Equity for Contractor?

by scripta on 6/21/2022, 8:43:21 PM with 2 comments
Hi,

We are a basement level startup that has started to get front-end development help on a contractor/part-time basis from someone I know from earlier in my career. We are trying to figure out the appropriate amount of equity to give the front-end dev, as well as how any such grant should be structured.

For example, do we do something like .25% vesting over 6 months so long as he puts in 10 hours per week?

Thanks

  • by codingdave on 6/21/2022, 8:51:43 PM

    Contractor? As in, you have a contract with them and pay them an hourly rate?

    Zero. Equity is given in exchange for taking on risk or deferred compensation, not just because work was done. At least, not unless they negotiated it as part of their contract (which does happen).

  • by yuppie_scum on 6/22/2022, 12:32:16 AM

    If this person is so critical to your company’s journey you should make them an FTE.