Name the contribution you are modeling
A sweat-equity model can estimate the compensation gap between market pay and actual pay over a period. State the role, market reference, time allocation, and dates. It is a model of contribution, not an automatic share issuance.
Make assumptions easy to question
Benchmarks vary by geography, role scope, stage, and experience. Record why you chose a benchmark and revisit it as responsibilities change. A reader should understand how the estimate would change under different assumptions.
Keep vesting explicit
Where your model includes cliffs or vesting, show the schedule and effective dates. Separate accrued contribution from any legally agreed ownership arrangement. Your cap table, signed agreements, and professional advice determine actual rights.
Use the report to support a discussion
TenX can help organize the model and export a report. Use it to discuss founder contribution, cash conservation, or compensation with the board. Have counsel and accountants review the legal and tax treatment before making commitments.
General information, not legal, financial, or tax advice. Review decisions with qualified advisers.
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