There's a bit of fuzzy math going on here. The equity formula is measured in terms of annual salary but stock actually vests over 4 years. So for the senior team member, they're actually getting 12.5% of their salary in stock every year.
If you assume the fabled 10X exit, the home run exit which makes the portfolio for investors, then that means the senior exec basically gets about double his salary as a reward for the exit (taking into account further dilution). For a "key function", a 10X exit represents a 20% bonus.
I don't see why they should be higher - he's talking specifically about employees. People who were not founders, but were hired and draw a salary. Risk vs. Reward - if you want the huge blockbuster exit bonus, get in at day 0 and suffer the pain of starting up, rather than come in with a salary and the like.
If you assume the fabled 10X exit, the home run exit which makes the portfolio for investors, then that means the senior exec basically gets about double his salary as a reward for the exit (taking into account further dilution). For a "key function", a 10X exit represents a 20% bonus.
These numbers seem pretty underwhelming to me.