Quote:
Originally Posted by berettafan
Also, for a production person i wonder if it makes sense to tie their % w/ some factor that measures lead/production time.
Here's a set of parameters as an example:
Let's say you want 20 days average time from final design to boxes in the warehouse.
Katie (just because it's a hot name) manages a weighted (by cost) average of 18 days.
Katie's % of gross is 0.5.
20/18 gives a multiple factor of 1.1111.
Katie's adjusted % is now 0.5555% of gross.
Conversely if Katie manages a weighted average of 25 days she gets (20/25 x 0.5%) 0.4% of gross.
I'd probably consider a cap in such an deal.
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Good stuff, thank you!
Any thoughts on how they can vest in an equity stake in the company?