URGENT UPDATE: Startups are facing an unprecedented challenge in attracting top talent as tech giants like Meta and OpenAI offer million-dollar salaries in the AI race. At the recent TechCrunch Disrupt 2025, industry experts emphasized the need for early-stage startups to develop competitive yet fair compensation strategies that can adapt as their businesses grow.
Yin Wu, co-founder and CEO of Pulley, highlighted that startups should not attempt to match the compensation packages of larger firms. Instead, they should focus on being as generous as possible in their offerings. “My pretty strong opinion when it comes to equity for a startup is that you should be more generous than what you think you should be,” Wu stated. This approach is essential for attracting candidates who may not be swayed solely by salary figures.
Randi Jakubowitz, head of talent at 645 Ventures, echoed Wu’s sentiments, urging startups to set clear performance goals for new hires. “Make sure you’re holding them accountable… that’s where, if you don’t move quickly if someone’s underperforming, that’s equity that you’ll never get back if they are fully vested,” Jakubowitz warned. This accountability is crucial, particularly as companies navigate the complexities of vesting cliffs.
The panelists also stressed the importance of establishing fair compensation frameworks from the outset. These frameworks not only promote equity among employees but also help startups avoid potential legal issues related to unequal pay. Rebecca Lee Whiting, founder of Epigram Legal, noted that compliance with laws, such as those prohibiting gender-based pay disparities in states like California, is essential for long-term success.
Startups are encouraged to develop a transparent compensation strategy that includes equity offerings in the 90th percentile for their industry. Wu shared that Pulley maintains a consistent range for each role, regardless of the employee’s location. This flexibility allows for scaling as the company grows, ensuring that the compensation remains competitive yet fair.
As startups prepare for future growth, the emphasis on fair compensation and equity distribution is more critical than ever. With the upcoming TechCrunch Disrupt 2026, scheduled for October 13-15, 2026 in San Francisco, founders are reminded that building an inclusive and equitable compensation structure can foster a more motivated and dedicated workforce.
In a rapidly evolving tech landscape, the message is clear: startups can thrive despite financial disparities with larger companies by prioritizing fairness and adaptability in their compensation strategies. As they navigate these challenges, founders should remember that developing a strong foundation for compensation will yield long-term benefits and greater employee satisfaction.
Share this urgent message with fellow entrepreneurs and startup enthusiasts to encourage a shift towards fairer compensation practices in the tech industry.
