/team-composition-analysis

name: team-composition-analysis
description: 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.
version: 1.0.0

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