<ul><li>When determining the number of options to give to the first non-founder employees, it is recommended to give them 3 times their forgone salary in stock.</li><li>For example, if an engineer's salary 'should' be $120k but they work for $60k, they should be awarded $180k in stock for each year they work.</li><li>However, this may not fit within the company's valuation, especially for early-stage startups.</li><li>The general rule is to estimate the equity the employee would have if they joined later and try to triple it.</li></ul>

Dear SaaStr: How Many Options Should I Give to the First Non-Founder Employees?

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