In the journey of starting a business, starting a company in partnership is the path chosen by many entrepreneurs. How to reasonably distribute equity is not only related to the company's operational efficiency and team stability, but also related to the protection of the rights and interests of each partner and long-term development. This is explained in more detail below.
1. How to divide shares?
The distribution of equity should match the actual contribution of the partners in the company. This includes capital investment, technology, market resources, management capabilities and other aspects. Therefore, the company's shares can be divided into three categories: capital shares, talent shares, and resource shares. As shown in the figure below:
1号占股： 50%*60%+70%*30%+40%*10%=55%
2号占股： 30%*60%+30%*30%=27%
3号占股： 20%*60%+60%*10%=18%
2. Agree on the rights and obligations between shareholders
1. The company's management responsibilities and division of labor
2. Contribution agreement
3. Restriction on the transfer of shares
4. Additional Investment Rules
5. Opt-out mechanism
6. Non-Compete
7. Dividend Mechanism
3. Remuneration and incentive mechanism for shareholders
Shareholders may include the company's senior executives, core employees, or individuals who are actively involved in the company's operation and management, and they may play both a shareholder and an employee role. For such shareholders, the company can adopt the following compensation incentive mechanisms:
1. Basic salary and bonuses
2. Stock option plan
3. Restricted Stock Units
4. Equity incentive plan
5. Long Service Awards
6. Performance Equity
7. Profit-sharing plan
4. Formulate a partnership agreement
After determining the equity distribution plan, it is recommended to formulate a detailed partnership agreement to clarify the rights and obligations of all parties, decision-making mechanism, exit mechanism, etc., so as to avoid disagreements and disputes in the future.
In general, a reasonable equity distribution plan should be based on the contribution and expected return of partners, the company's future development plan, risk-taking ability and other factors. When formulating the equity distribution plan, it is recommended to fully communicate and negotiate to ensure that the interests of all parties are reasonably protected, and clearly stipulate in the partnership agreement to ensure the continued stability of the cooperative relationship.