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

• Working on team composition analysis tasks or workflows
• Needing guidance, best practices, or checklists for team composition analysis

Do not use this skill when

• The task is unrelated to team composition analysis
• You need a different domain or tool outside this scope

Instructions

• Clarify goals, constraints, and required inputs.
• Apply relevant best practices and validate outcomes.
• Provide actionable steps and verification.
• If detailed examples are required, open resources/implementation-playbook.md.

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
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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
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Organizational Design

Reporting Structure

Pre-Seed:

Founders (flat structure)
├── Contractors
└── First hires (report to founders)
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Seed:

CEO
├── Engineering Lead (2-4 engineers)
├── Sales/Growth Lead (1-2 reps)
├── Product Manager
└── Operations
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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
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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
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Additional Resources

Reference Files

• references/compensation-benchmarks.md - Detailed salary data by role, level, and location
• references/equity-calculator.md - Equity sizing formulas and dilution scenarios

Example Files

• examples/seed-stage-hiring-plan.md - Complete hiring plan for seed-stage SaaS company
• examples/org-chart-evolution.md - Organizational design from 5 to 50 people

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

For detailed compensation benchmarks and hiring plan templates, see references/ and examples/.

Limitations

• Use this skill only when the task clearly matches the scope described above.
• Do not treat the output as a substitute for environment-specific validation, testing, or expert review.
• Stop and ask for clarification if required inputs, permissions, safety boundaries, or success criteria are missing.