1. Compensation in Start-Up Companies Andreya Davis Trish Turner Matt Boone Kristofer Borchard Michele Boren Dustin Haytema

2. It’s Movie Time !! “Dirty Work”

3. How does this pertain to start-ups?  Every company starts with one great idea.  Their idea was generated by market demand.  The events that come next are typically the hard part.

4. Any ideas for a start-up?  If this process were easy, wouldn’t everyone own their own company?

5. How are we going to break this issue up?  Employers Perspective  Employees Perspective Two viewpoints of the situation are better than just one!!!

6. What are employers of start-ups searching for?

7. We Need Employees!  What Are We Looking For?  Motivated  Dedicated  Independent  Knowledgeable  Open Minded  How Do We Obtain This?  Intrinsic Rewards  Extrinsic Rewards

8. What Else Do We Consider?  Legal Considerations:  Wage withholding  Payroll Tax Accounts  Employer I.D Number  Workers Compensation and Insurance  Compliance with FLSA

9. How to Compensate Beyond the Legal Minimums  Employer must decide what to offer (Afford):  Base Pay  Salary vs Hourly Rate  Stock Options  Health Benefits  401 K Plans  Vacation Packages  Combinations

10. Why is compensation important?  Tons of new start-ups  Generated from the Dot-Com boom  Start-ups are offering non- traditional as well as traditional compensation systems  Stock options  Anything to entice the prospective employee  The current down-turn in the economy  Skepticism of compensation within start-up is very high right now

11. It’s Movie Time Again!! “Boiler Room” Isn’t this what every employee is looking for?

12. What Are Employees Looking For?

14. Why would you join a start-up company?  Endless opportunity for advancement  Becoming a major owner in the firm  Having a voice in the company  The chance to make a difference

15. A Company That Did It Right

16. JetBlue  Beginnings  David Neeleman  February 11, 2000  Investment Capital: $130 Million  100% First-class

17. Employees  Want great costumer service  “Real enticements to come from the inside out.”  Motivated by intrinsic…  Work-life balance  Elimination of Titles  …and extrinsic rewards  Comprehensive pay and benefit package

18. Compensation at JetBlue  Market matched compensation strategy  Benefits  Medical/dental/life insurance  Short-term disability  EAP’s  401 K plan’s  Profit sharing  Stock purchase plan  Paid time off  Flight benefits

19. What Have We Learned?  Get lots and lots of start up capital  Be knowledgeable on how to compensate and motivate  Watch the dough roll in!!!