State of Startup Compensation H1 2024 Addendum
The document is an analytical appendix from Carta’s “State of Startup Compensation H1 2024 Addendum” that provides quantitative benchmarks for equity compensation across startup stages. It first defines key terms—option pools, early‑employee equity, advisor equity, and board‑member equity—clarifying how percentages are calculated against fully diluted equity. It then presents median and percentile ranges for employee option pool sizes (typically 13‑20% of equity, with 25th‑75th percentiles around 20‑22%), broken out by post‑money valuation tiers (larger valuations tend to have slightly smaller pools). The report details early‑employee grant percentages by hire number and year, showing a rapid decline in equity for later hires and a modest increase from 2022 to 2023. Advisor equity trends are shown, with median grants falling from 0.25% at pre‑seed to 0.11% at later stages, and only 10% of pre‑seed advisors receiving ≥1% equity. Board‑member equity is tracked across stages, remaining relatively stable with median grants around 0.5‑0.6% at pre‑seed and seed, and slightly lower at Series A. Throughout, tables list 10th, 25th, median, 75th, and 90th percentiles for each category, providing founders, HR professionals, and investors with concrete reference points for structuring equity packages.
Topics
Equity Terminology and Measurement Framework
Defines option pools, early‑employee equity, advisor equity, and board‑member equity as percentages of fully diluted company equity and explains vesting assumptions.
Employee Option Pool Size Benchmarks
Presents median, 25th, and 75th percentile ranges for total employee option pools (13‑20% of equity) and shows how pool size varies across post‑money valuation tiers.
Early‑Employee Grant Distribution by Hire Order and Year
Shows how equity grants for the first ten hires decline with hire number and tracks modest year‑over‑year changes from 2022 to 2023, including specific percentile thresholds.
Advisor Equity Grant Trends and Percentiles
Details median and percentile grant sizes for advisors at pre‑seed, seed, and Series A stages, noting a decrease in median grants and the rarity of >1% grants.
Board‑Member Equity Grant Benchmarks
Provides median, 10th, and 90th percentile equity grants for independent board members across pre‑seed, priced seed, and Series A stages, highlighting stability over time.
Valuation Tier Influence on Option Pool Allocation
Correlates post‑money valuation ranges ($1 M‑$10 B) with average option pool percentages, illustrating a slight inverse relationship between company size and pool size.