Team Composition Analysis

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

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

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/.

When to Use

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.

Covers: Team Structure by Stage, Pre-Seed (0-$500K ARR), Seed ($500K-$2M ARR), Series A ($2M-$10M ARR), Role-by-Role Planning.