4:17How Much Equity to Give Your Cofounder
Michael Seibel argues that co-founder equity should be set with long-term motivation in mind, rather than treated mainly as a negotiation outcome. He explains how four-year vesting and a one-year cliff protect the company if a co-founder leaves early. Because that safeguard exists, he advises CEOs to be generous with equity so co-founders feel and act like owners. Equal splits can be a useful rule of thumb, but the right split depends on the team and its future needs.