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theontho / startup-equity-models.md
Last active November 15, 2016 01:03
What I would do as an employee friendly startup equity model

An employee friendly startup equity model

Before Funding & Valuation:

Low strike price with pre-exercise. Exercising your stock grant should be cost under %1 of salary.

After Funding & Valuation:

Company should pay the tax to give equity directly to employees with an X-year vesting schedule.

Once it starts becomming too expensive for the company:

Too expensive being $10-30k in taxes? You do X-year vesting liquidity-trigger RSUs, long lasting stock options or some combo of the two.