---
name: team-composition-analysis
description: This skill should be used when the user asks to "plan team structure", "determine hiring needs", "design org chart", "calculate compensation", "plan equity allocation", or requests organizational design and headcount planning for a startup.
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

## Role-by-Role Planning

### Engineering Team

**Pre-Seed:**

- Founders write code
- 0-1 contract developers

**Seed:**

- Engineering Lead (first $150K-$180K)
- 2-3 Full-Stack Engineers ($120K-$150K)
- 1 Frontend or Backend Specialist ($130K-$160K)

**Series A:**

- VP Engineering ($180K-$250K + equity)
- 2-3 Senior Engineers ($150K-$180K)
- 3-5 Mid-Level Engineers ($120K-$150K)
- 1-2 Junior Engineers ($90K-$120K)
- 1 DevOps/Infrastructure ($140K-$170K)

### Sales & Marketing

**Pre-Seed:**

- Founders do sales
- Contract marketing help

**Seed:**

- First Sales Hire / Head of Sales ($120K-$150K + commission)
- Marketing/Growth Lead ($100K-$140K)
- SDR or BDR (if B2B) ($50K-$70K + commission)

**Series A:**

- VP Sales ($150K-$200K + commission + equity)
- 3-5 Account Executives ($80K-$120K + commission)
- 2-3 SDRs/BDRs ($50K-$70K + commission)
- Marketing Manager ($90K-$130K)
- Content/Demand Gen ($70K-$100K)

### Product Team

**Pre-Seed:**

- Founder as product lead

**Seed:**

- First Product Manager ($120K-$150K)
- Contract designer

**Series A:**

- Head of Product ($150K-$180K)
- 1-2 Product Managers ($120K-$150K)
- Product Designer ($100K-$140K)
- UX Researcher (optional) ($90K-$130K)

### Customer Success

**Pre-Seed:**

- Founders handle support

**Seed:**

- First CS hire (optional) ($60K-$90K)

**Series A:**

- CS Manager ($100K-$130K)
- 2-4 CS Representatives ($60K-$90K)
- Support Engineer (technical) ($80K-$120K)

### G&A (General & Administrative)

**Pre-Seed:**

- Contractors (accounting, legal)

**Seed:**

- Operations/Office Manager ($70K-$100K)
- Contract CFO

**Series A:**

- CFO or Finance Lead ($150K-$200K)
- Recruiter ($80K-$120K)
- Office Manager / EA ($60K-$90K)

## 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 pool
