Startup Offer Letter

Use this template to explain how startup compensation works across options, salary and exit scenarios.

What is a Startup Compensation Model?

A good startup compensation model is one that effectively communicates how compensation works across various components such as equity, salary, and exit scenarios. It helps both founders and employees understand and navigate the complexities of startup compensation.

About the Startup Compensation Document

This template combines information about the role, base salary, and equity, while allowing candidates to interact with different compensation packages and explore various exit scenarios. It’s a powerful tool for fostering trust, understanding, and enabling employees to grasp their total compensation.

What are the benefits of using this template?

  • Transparent and Interactive: Clearly present the role, base salary, and equity options together. Candidates can interact with different compensation packages, adjusting the base-to-equity ratio and exit scenarios, and observe how it affects their potential financial outcomes.
  • Speed and Customization: Easily adjust inputs for new candidates, roles and valuations periods to personalize offers while saving time and minimizes the risk of errors.
  • Professionalism and Design: Excite new candidates with offers that are fun, dynamic and engaging to play with and foster a sense of trust and confidence in their compensation package.