Typically, equity packages are structured based on the company's valuation and the role of the individual within the company. Founders often receive significant equity, while early employees and advisors might receive smaller percentages. Equity can be distributed through various instruments like:
- Stock Options: Grants the right to purchase company shares at a predetermined price. - RSUs: Shares are issued after meeting certain conditions like time-based vesting. - Phantom Stock: Provides cash bonuses equivalent to the value of a certain number of shares.