Figma's IPO and CEO Dylan Field's Incentive Structure: A Blueprint for Startup Compensation and Shareholder Alignment

In the ever-evolving landscape of tech startups, the post-IPO compensation strategies of founders and executives have become a focal point for investors, regulators, and industry observers. Figma's 2025 IPO, led by CEO Dylan Field, offers a compelling case study of how founder pay packages are increasingly structured to align long-term value creation with shareholder interests. Field's compensation, a multi-tiered, performance-driven framework, reflects broader trends in startup compensation and underscores the strategic importance of tying executive incentives to company success.

A Compensation Structure Designed for Growth

Dylan Field's compensation package post-IPO is one of the most ambitious in recent tech history. At its core is a performance-based equity plan involving 14.5 million shares, divided into seven tranches. The vesting of these shares is contingent on Figma's stock price reaching specific thresholds over a 10-year period. For instance, if the 60-day average stock price hits $60, Field unlocks $130 million in value. Should the stock price reach $130—a 54% increase from the IPO price—his potential windfall balloons to $1.9 billion. This structure ensures Field's financial rewards are deeply tied to Figma's market performance, incentivizing long-term growth over short-term gains.

Complementing this are service-based awards from a 2021 grant. Field holds 7.9 million shares that vest incrementally, with a total pre-tax value of over $230 million at the IPO price. These shares vest over time, rewarding continuity and long-term commitment. Additionally, market-based awards of 11.25 million shares are tied to Figma hitting valuation targets of $15 billion, $20 billion, and $25 billion. With Figma's post-IPO valuation at $18 billion, Field is already positioned to unlock further value as the company scales.

Broader Trends in Founder Compensation

Field's package is emblematic of a broader shift in startup compensation, particularly post-IPO. Founders are increasingly rewarded through performance-based equity rather than cash-heavy structures, aligning their interests with shareholders and the company's long-term trajectory. This trend is driven by the need to balance immediate liquidity with sustained growth.

For example, Elon Musk's $56 billion Tesla compensation package—structured around stock price and market cap targets—set a precedent for performance-driven incentives. Similarly, Field's structure mirrors this model, albeit on a slightly smaller scale. The emphasis on stock price milestones and valuation targets ensures that founders are motivated to drive innovation, maintain profitability, and enhance market confidence.

Another notable trend is the use of dual-class share structures to preserve founder control. Figma's dual-class system grants Class B shares—held by insiders like Field—ten votes per share, compared to one vote for Class A shares. This structure allows Field to maintain strategic autonomy despite external pressures, a common feature in tech IPOs.

Shareholder Alignment and Governance

Figma's IPO also included mechanisms to stabilize the stock price and align shareholder interests. An 180-day lock-up period for insiders and pre-IPO investors prevented a flood of shares from entering the market immediately post-IPO, mitigating volatility. This period expired in October 2024, allowing a gradual release of shares and signaling confidence in the company's future.

The company's board was also restructured to include independent directors with expertise in enterprise software and finance, balancing institutional knowledge with fresh perspectives. This governance shift supports Figma's ability to navigate public market demands while retaining its innovative culture.

Investment Implications

For investors, Field's compensation structure offers both risks and opportunities. On the upside, the performance-based incentives strongly align his interests with Figma's long-term success. If the company continues to innovate—such as with its AI-powered design tools—and maintains its market leadership, Field's incentives could drive further growth.

However, the dual-class share structure and concentrated voting power raise governance concerns. While it protects the company from short-term shareholder pressures, it could also limit external oversight. Investors should monitor Figma's ability to execute its product roadmap and sustain revenue growth, especially as it faces competition from Adobe and other design platforms.

Conclusion

Dylan Field's compensation post-Figma's IPO is a masterclass in aligning founder incentives with long-term value creation. His performance-based equity, market-linked awards, and strategic control reflect broader trends in startup compensation, emphasizing growth over immediate liquidity. For investors, this structure offers a blueprint for evaluating founder pay packages: the more deeply tied to performance and valuation targets, the stronger the alignment with shareholder interests.

As Figma navigates the challenges of public markets, its ability to meet—and exceed—these ambitious targets will be a key indicator of its future success. For now, the IPO appears to have set the stage for a compelling story of innovation, governance, and sustained growth.