The Founders’ Pie Calculator

Spiced Plum and Nectarine Pie.  Originally uploaded by LynnInTokyo.

Frank Demmler:

Several weeks ago, we took a look at the founders’ pie. I noted that frequently the founding team divides 100% by the number of founders.

I also cautioned that this is the WRONG WAY!

I then went on to identify the factors that should be considered when making these decisions.

Since then, I have had several people tell me that while what I wrote certainly made sense, it wasn’t very helpful. They said that when it came to “rug cutting time,â€? absent an alternative method, equal shares was the only method that seemed to be “fair.â€?

As a public service, I have “inventedâ€? a Founders’ Pie Calculator. As you will soon see, this calculator is not particularly profound. In fact, I’m sure I haven’t “inventedâ€? it, but, at the same time, I have never seen it before. [Caution: perhaps there’s a fatal flaw that I haven’t considered.]

Its primary benefits are that it provides a way to quantify the elements of the decision making process, and that it appears to be logical and fair.

via Rob Hyndman.

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