Who deserves Sweat Equity Compensation?

On an Entrepreneur Forum, where Sweat Equity matters were discussed, that interesting question emerged: Who deserves Sweat Equity Compensation?
Here is a brief summary of common views that attendees have pointed out about that interesting question.

Sweat Equity compensation in Start-up is reserved for:

Mainly those who:

• contribute to the company in the early stages, and are willing to accept ownership and shares in the company rather than pure cash compensation.

• offer a very unique contribution to the start-up company, including engineering and intellectual property needed for the company’s products and developing the early business, or seasoned executives, as Advisory Board members or mentor, helping the founders to go to investment bankers and VCs for additional development funding, or to gain the first milestones and tap new markets.

• are able to stick out the early phases of the company without a desperate need for cash, as senior people who are already financially stable.

and not for:

• Mercenaries or those who may leave the company as soon as their shares are vested.

• Younger people, newlyweds, new homeowners… who are not generally good candidates for high levels of sweat equity, as they will have a need for higher levels of cash, and will probably not be able to stay in a start-up for a long period of time while waiting out the valuation of their potential stock shares