Founding teams who want to avoid the potentially disastrous consequences of an early and static equity split should do their best to devise a compensation plan (including the equity split) that (a) reflects each member’s past and expected contributions as accurately as possible and (b) motivates each cofounder without seeming unfair to the others. Teams should also keep in mind that the deal is never completely done. Circumstances will change, and the equity split and compensation may need to change, too, in order to accomplish what these essential tools are meant to accomplish—an issue we
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