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Corporate Law: What is the best practice for compensating early employees with equity at a seed stage start-up?
MF
MF
Mark Fackrell, Outsourced CFO Services answered:

Equity.

You may try getting them to defer salaries, but they will probably not be interested. This may not be good from the business point of view either, because it just adds debt to the business

Generally the only to viable forms of compensation are cash and equity.

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