Team Composition Analysis
Design optimal team structures, hiring plans, compensation strategies, and equity allocation for early-stage startups from pre-seed through Series A. Use this skill when planning headcount, determining which roles to hire next, setting compensation or equity ranges, designing org structure, or building a hiring budget aligned to funding milestones.
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# Team Composition Analysis
Design optimal team structures, hiring plans, compensation strategies, and equity allocation for early-stage startups from pre-seed through Series A.
## Overview
Build the right team at the right time with appropriate compensation and equity. Plan role-by-role hiring aligned with revenue milestones, budget constraints, and market benchmarks.
## Team Structure by Stage
### Pre-Seed (0-$500K ARR)
**Team Size: 2-5 people**
**Core Roles:**
- Founders (2-3): Product, engineering, business
- First engineer (if needed)
- Contract roles: Design, marketing
**Focus:** Build and validate product-market fit
### Seed ($500K-$2M ARR)
**Team Size: 5-15 people**
**Key Hires:**
- Engineering lead + 2-3 engineers
- First sales/business development
- Product manager
- Marketing/growth lead
**Focus:** Scale product and prove repeatable sales
### Series A ($2M-$10M ARR)
**Team Size: 15-50 people**
**Department Build-Out:**
- Engineering (40%): 6-20 people
- Sales & Marketing (30%): 5-15 people
- Customer Success (10%): 2-5 people
- G&A (10%): 2-5 people
- Product (10%): 2-5 people
**Focus:** Scale revenue and build repeatable processes
## Detailed section: Role-by-Role Planning
Originally a 1720-byte section in this SKILL.md. Moved to `references/details.md` to fit Codex's 8 KB skill body cap.
## Compensation Strategy
### Base Salary Benchmarks (US, 2024)
**Engineering:**
- Junior: $90K-$120K
- Mid-Level: $120K-$150K
- Senior: $150K-$180K
- Staff/Principal: $180K-$220K
- Engineering Manager: $160K-$200K
- VP Engineering: $180K-$250K
**Sales:**
- SDR/BDR: $50K-$70K base + $50K-$70K commission
- Account Executive: $80K-$120K base + $80K-$120K commission
- Sales Manager: $120K-$160K base + $80K-$120K commission
- VP Sales: $150K-$200K base + $150K-$200K commission
**Product:**
- Product Manager: $120K-$150K
- Senior PM: $150K-$180K
- Head of Product: $150K-$180K
- VP Product: $180K-$220K
**Marketing:**
- Marketing Manager: $90K-$130K
- Content/Demand Gen: $70K-$100K
- Head of Marketing: $130K-$170K
- VP Marketing: $150K-$200K
**Customer Success:**
- CS Representative: $60K-$90K
- CS Manager: $100K-$130K
- VP Customer Success: $140K-$180K
### Total Compensation Formula
```
Total Comp = Base Salary × 1.30 (benefits & taxes) + Equity Value
```
**Fully-Loaded Cost:**
- Base salary
- Payroll taxes (7.65% FICA)
- Benefits (health insurance, 401k): $10K-$15K per employee
- Other (workspace, equipment, software): $5K-$10K per employee
**Rule of Thumb:** Multiply base salary by 1.3-1.4 for fully-loaded cost
### Geographic Adjustments
**San Francisco / New York:** +20-30% above benchmarks
**Seattle / Boston / Los Angeles:** +10-20%
**Austin / Denver / Chicago:** +0-10%
**Remote / Other US Cities:** -10-20%
**International:** Varies widely by country
## Equity Allocation
### Equity by Role and Stage
**Founders:**
- First founder: 40-60%
- Second founder: 20-40%
- Third founder: 10-20%
- Vesting: 4 years with 1-year cliff
**Early Employees (Pre-Seed):**
- First engineer: 0.5-2.0%
- First 5 employees: 0.25-1.0% each
**Seed Stage Hires:**
- VP/Head level: 0.5-1.5%
- Senior IC: 0.1-0.5%
- Mid-level: 0.05-0.25%
- Junior: 0.01-0.1%
**Series A Hires:**
- C-level (CTO, CFO): 1.0-3.0%
- VP level: 0.3-1.0%
- Director level: 0.1-0.5%
- Senior IC: 0.05-0.2%
- Mid-level: 0.01-0.1%
- Junior: 0.005-0.05%
### Equity Pool Sizing
**Option Pool by Round:**
- Pre-Seed: 10-15% reserved
- Seed: 10-15% top-up
- Series A: 10-15% top-up
- Series B+: 5-10% per round
**Pre-Funding Dilution:**
Investors often require option pool creation before investment, diluting founders.
**Example:**
```
Pre-money: $10M
Investors want 15% option pool post-money
Calculation:
Post-money: $15M ($10M + $5M investment)
Option pool: $2.25M (15% × $15M)
Founders diluted by pool creation before new money
```
## Organizational Design
### Reporting Structure
**Pre-Seed:**
```
Founders (flat structure)
├── Contractors
└── First hires (report to founders)
```
**Seed:**
```
CEO
├── Engineering Lead (2-4 engineers)
├── Sales/Growth Lead (1-2 reps)
├── Product Manager
└── Operations
```
**Series A:**
```
CEO
├── CTO / VP Engineering (6-20 people)
│ ├── Engineering Manager(s)
│ └── Individual Contributors
├── VP Sales (5-15 people)
│ ├── Sales Manager
│ ├── Account Executives
│ └── SDRs
├── Head of Product (2-5 people)
│ ├── Product Managers
│ └── Designers
├── Head of Customer Success (2-5 people)
└── CFO / Finance Lead (2-5 people)
├── Recruiter
└── Operations
```
### Span of Control
**Manager Ratios:**
- First-line managers: 4-8 direct reports
- Directors: 3-5 direct reports (managers)
- VPs: 3-5 direct reports (directors)
- CEO: 5-8 direct reports (executive team)
## Full-Time vs. Contract
### Use Full-Time for:
- Core product development
- Sales (revenue-generating roles)
- Mission-critical operations
- Institutional knowledge roles
### Use Contractors for:
- Specialized short-term needs (legal, accounting)
- Variable workload (design, marketing campaigns)
- Skills outside core competency
- Testing role before FTE hire
- Geographic expansion before permanent presence
### Cost Comparison
**Full-Time:**
- Lower hourly cost
- Benefits and overhead
- Long-term commitment
- Cultural fit matters
**Contract:**
- Higher hourly rate ($75-$200/hour vs. $40-$100/hour FTE equivalent)
- No benefits or overhead
- Flexible engagement
- Easier to scale up/down
## Hiring Velocity
### Realistic Timeline
**Role Opening to Hire:**
- Junior: 6-8 weeks
- Mid-Level: 8-12 weeks
- Senior: 12-16 weeks
- Executive: 16-24 weeks
**Time to Productivity:**
- Junior: 4-6 months
- Mid-Level: 2-4 months
- Senior: 1-3 months
- Executive: 3-6 months
### Planning Buffer
Always add 2-3 months buffer to hiring plans.
**Example:**
If need engineer by July 1:
- Start recruiting: April 1 (12 weeks)
- Productivity: September 1 (2 months ramp)
## Budget Planning
### Compensation as % of Revenue
**Early Stage (Seed):**
- Total comp: 120-150% of revenue (burning cash to grow)
- Engineering: 50-60%
- Sales: 30-40%
- Other: 20-30%
**Growth Stage (Series A):**
- Total comp: 70-100% of revenue
- Engineering: 35-45%
- Sales: 25-35%
- Other: 20-30%
### Headcount Budget Formula
```
Total Comp Budget = Σ (Role Count × Fully-Loaded Cost × % of Year)
Example:
3 Engineers × $202K × 100% = $606K
2 AEs × $230K × 75% (mid-year start) = $345K
1 PM × $162K × 100% = $162K
Total: $1.1M
```
## Quick Start
To plan team composition:
1. **Identify stage** - Pre-seed, seed, or Series A
2. **Define roles** - What functions are needed now
3. **Prioritize hires** - Critical path for business goals
4. **Set compensation** - Base salary + equity by level
5. **Plan timeline** - Account for recruiting and ramp time
6. **Calculate budget** - Fully-loaded cost × headcount
7. **Design org chart** - Reporting structure and span of control
8. **Allocate equity** - Fair allocation that preserves poolRelated Skills
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