HOW MUCH EQUITY CAN YOU GIVE TO EMPLOYEES BEFORE IT'S A PROBLEM?

Summary from the TLDR Founders newsletter

The median public tech company spends 12% of revenue on stock-based compensation. Sounds outrageous until you see that actual shareholder dilution is under 2%. The math is simple - SBC is measured against revenue, dilution against market cap. A company trading at 4x revenue spending 12% on SBC only dilutes 3% of market cap. The companies getting killed aren't spending 20% on SBC. They're the ones growing 5% while pretending they're still a growth story.