Illustrates a firm in its initial stage and emphasizes on the founder’s choices in relation to dividing the equity and reimbursements. Also takes into account the grounding framework and activities that will stabilize the company’s standing as it develops. Sheds light on a number of different action concerns which include: dividing equity and reimbursement among the founding members and later employed individuals, structuring compensation and implementing practices for the new venture, determining what the organizational culture should be and how to formalize it, and determining whether to employ a senior-level member--the first non-initiator employee--at a remuneration more than, and company share provision comparable to that of the company’s originators.
Evaluate the founders’ decisions regarding the split of equity and compensation level. As a potential venture investor in the company, would these decisions concern you?
Evaluate the size and composition of the founding team. What is the difference between being a “founder” and an early employee?
Evaluate Paige Miller as an addition to the team, and assess her compensation demands. Would you hire her on the terms she seeks?
Assess the company’s progress on each of the specific issues discussed in the last section of the case: the hiring process; a compensation policy; the company’s culture. Specifically, in each of these areas, what should the company do?