How much equity is Fair for Unpaid Employees?
So a couple of months back before joining Pushstart, I was being offered equity in a bootstrapped healthcare startup.
Obviously, there are many factors to consider but one piece of the contract really stands out!
They were offering 0.5% vested over 4 years which to me feels low with no salary. However, in the contract, they stipulate a salary when the company is able to pay.
Also, this wouldn’t be a full-time position until the company could pay a salary. I’d be putting in 10-20 hours per week on top of my previous day job.
So, what I wanted to ask is, Is this a standard thing to do?
If so does the 0.5% equity seem reasonable when the company is at least a year away from having any sales and possibly several years before sales are enough to pay all employees?