Slicing Pie is based on a simple principle: a person’s % share of the rewards should always be equal to that person’s % share of what’s put at risk to attain those rewards. When a person contributes to a startup company and does not get paid for their contribution, they are putting their contribution at risk with the hopes of getting a future reward. And, while the timing and the amount of the future reward is unknowable, the amount of the contributions at-risk is knowable. It is equal to the fair market value of the contributions.
