News Summary

Startups face challenges in offering competitive salaries compared to big tech companies like Meta and OpenAI, which can afford million-dollar salaries. However, industry experts suggest that startups can still attract talent by developing a compensation strategy that is generous, fair, and flexible. Yin Wu, CEO of Pulley, emphasizes the importance of being generous with equity and setting clear goals for new hires. Wu advises startups to build compensation packages with equity offerings in the 90th percentile, regardless of the employee’s location, to avoid potential legal issues and ensure fairness. Randi Jakubowitz from 645 Ventures also stresses the need for clear accountability and understanding the implications of vesting. Rebecca Lee Whiting of Epigram Legal highlights the importance of setting compensation standards to avoid legal pitfalls, such as unequal pay across different genders. Overall, the focus is on creating a fair foundation that can be adjusted as the company grows.