Alright brain trust, I'm putting this out to the forum community to see what ya'll think.
The Situation
I was introduced to a guy who became very interested in what my company is doing while at a conference. And he's semi retired but looking for a project to be part of. He's also as perfect as a candidate you could hope for. He spent over 20 years as a Brand Manager and VP for one of the largest salad dressing brands in the US. (if you haven't read my progress thread, I own a food brand that makes dressings and condiments) He wants to join the company and be part of the founding team. He didn't throw out words like "cofounder" or "partner" which is good.
If he came onto the company I would give him a role akin to a COO position. He would work part time for the company, 3 days a week. We haven't completed our fundraising yet, so we don't have capital to pay his salary, and he knows that. He is willing to work for equity. In addition to his COO role, he would be helping with the fundraise by leveraging his network and connections, but I'd be the one in the pitch room selling the investors.
My situation
I've spent 2 years working on this business, creating the products from nothing, selling into over 100 grocery stores and selling over 3,500 units online. All the money that's been put into the business is my money, he will not be contributing capital.
When we reach an agreement and equity is granted, it will definitely be on a vesting schedule over 4 years.
Everything I've researched on equity grants to founding team members is geared towards Silicon Valley/Tech Companies and usually is about paying your developer. And estimates on what to pay C-Suite level team members range from 2% to 49%.
What does the forum think is an appealing, but appropriate equity percentage to give someone of this caliber?
The Situation
I was introduced to a guy who became very interested in what my company is doing while at a conference. And he's semi retired but looking for a project to be part of. He's also as perfect as a candidate you could hope for. He spent over 20 years as a Brand Manager and VP for one of the largest salad dressing brands in the US. (if you haven't read my progress thread, I own a food brand that makes dressings and condiments) He wants to join the company and be part of the founding team. He didn't throw out words like "cofounder" or "partner" which is good.
If he came onto the company I would give him a role akin to a COO position. He would work part time for the company, 3 days a week. We haven't completed our fundraising yet, so we don't have capital to pay his salary, and he knows that. He is willing to work for equity. In addition to his COO role, he would be helping with the fundraise by leveraging his network and connections, but I'd be the one in the pitch room selling the investors.
My situation
I've spent 2 years working on this business, creating the products from nothing, selling into over 100 grocery stores and selling over 3,500 units online. All the money that's been put into the business is my money, he will not be contributing capital.
When we reach an agreement and equity is granted, it will definitely be on a vesting schedule over 4 years.
Everything I've researched on equity grants to founding team members is geared towards Silicon Valley/Tech Companies and usually is about paying your developer. And estimates on what to pay C-Suite level team members range from 2% to 49%.
What does the forum think is an appealing, but appropriate equity percentage to give someone of this caliber?
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