Words That Work is an interesting new book by Dr. Frank Luntz. The premise of the book is that the way words are used can influence and motivate the way people connect thought and emotion, and thus influence them to take desired actions. These principles can be used for new and emerging ventures to attract customers, investors, partners, and to better manage employees.
In the book, Dr. Luntz discusses ten rules of words:

A question that is often asked by entrepreneurs and emerging businesses is how much equity to give key employees and new hires.

While there is no correct answer to this question, there are guidelines and key criteria to consider. The key criteria are 1) other compensation and 2) the risk profile of the venture.

Other Compensation: Equity compensation is one component of an employee's total compensation. Other components include base salary, bonuses, benefits, etc. For each position and geographic market there are standard compensation rates.