I think the type of role or function the exec or manager is being asked to perform would be a factor. In the sales area for example, I would find independents to mix in who are willing to take a 10 percent or whatever commission in return for finding business. As another example, if there is a large component of analytics or stats work that needs to be done, approaching a university and asking a professor to give some of the build or calcs to students as projects for their theses is an option. You don’t have to pay for the work as the student uses the material as a basis for their thesis. R Studio and other open source platforms can be used initially instead of more costly buy options. Interns are also an option.
I find equity is a tough one. You want to leave enough room for participation in later stages of funding and existing equity or equity option holders must be prepared to be diluted later on down the process. From a team perspective with equity options too, some teams or people are good with uncertainty and good during initial startup stages, but their skills aren’t geared for working in businesses with more established business processes later on into the company development lifecycle. Perhaps there are a few individuals you may see as being important to tie down with equity, but I would be quite targeted with this I guess as well a lot depends on the type of culture you want to build and the type of people you want to attract, the values that you think are important for your business. I think there is more freedom for employees to do more during a startup and have wider boundaries or achieve more, more quickly than in established businesses and for some that is a part of the attraction of working in a startup. Compensation is not everything. If you need to pay top dollar to attract the best you will likely lose them when someone else later on is willing to pay even more. Also, I think it is important to tie the variable compensation down to specific targets as well. Achieving a stretch target of x gets a bonus of y, below x a bonus of z, and so on. Make sure you are strong on the sums so you know what you can really afford.