Team Composition Analysis

When to use this skill

Use Team Composition Analysis when an AI agent needs a reusable SKILL.md workflow for this job: 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 planning headcount, determining which roles to hire next, setting compensation or equity ranges, designing org structure, or building a hiring budget aligned to funding milestones.

When not to use it

Skip Team Composition Analysis when the task is outside the business category, or when a more specific skill in this directory already covers the same workflow with clearer triggers.

How to install

1. Personal install: create ~/.claude/skills/team-composition-analysis/SKILL.md (and any bundled scripts) so Claude Code, Claude Desktop, and compatible agents can load it in every project.
2. Project install: commit the same folder at .claude/skills/team-composition-analysis/ so teammates get the skill with the repo.
3. Restart the agent session after copying files so it re-scans the skills directory, then ask for the task in words that match the skill description.

Full install guide for Claude, Cursor, and Codex

What this skill does

# Team Composition Analysis

Design optimal team structures, hiring plans, compensation strategies, and equity allocation for early-stage startups from pre-seed through Series A.

## 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

## Detailed section: Role-by-Role Planning

Originally a 1720-byte section in this SKILL.md. Moved to `references/details.md` to fit Codex's 8 KB skill body cap.

## 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 ```

## 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

Intended uses

• Use Team Composition Analysis when this documented workflow matches the task.