Remove Conversion Remove Hiring Remove Retention Remove Vesting
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Should You Offer Equity Compensation to Employees?

Up and Running

More often than not, equity compensation is an attraction and retention tool, rather than a replacement to salary. Stock options are issued to employees usually through an Employee Stock Option Plan (ESOP) and include what is called a “vesting period.” The longer employees stay, the more of their stock options they “vest.”.

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A Different Approach to Refreshing Stock Option Grants

Feld Thoughts

Assume you hire someone and grant them 10,000 options with monthly vesting of four years with a one year cliff. That means that after one year, they get 25% of their options and then start vesting the remaining options monthly at a rate of 1/48 (208.3 Let me give an example. options / month, or 2,500 / year.)

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Making Decisions in Context

Austin Startup

Hiring is a chapter unto itself, but it deserves to lead off any discussion of context. Compensation decisions obviously affect hiring and retention. You can’t be too careful in determining comp packages for your new hires. Your best defense against slippage is making the right hires in the first place.

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Keep It Under Your Hat: Valuation Caps and the $650 Million Sale of MySpace for $125 Million

Gust

In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does a priced equity round at a high pre-money valuation – “high” meaning above the cap, which is often a heavily negotiated term. of MySpace, Inc.

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A Few Key People Really Can Make a Huge Difference

Both Sides of the Table

Your highest priority right now is hiring the 1 or 2 people that are going to join your company and make a difference. When you account for competition for talent, the difficulty of retention, the cost of living and the difficulty of rising above the noise – there are many advantages of staying put.

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Crazy! 189 Answers To The Top Startup Questions On Your Mind

maplebutter.com

You are here: Home » Hiring » Crazy! Written By Dan Martell on February 2nd, 2012 | Category: Hiring LeanStartup Marketing Metrics Startup Life | 6 Comments. Product/Metrics (70%/30% time) * Get your product activation (sign-up + meaningful action) to 60% * then, Get your product retention to 20% weekly. Persistence.

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How to Quit Your Job

OnlyOnce

I am realistic enough to know that’s not possible, but as you know, employee engagement, retention, and growth & development are incredibly important to us. Ideally that would be your manager, but if you’re not comfortable starting the conversation there, find someone else — your department head, someone in HR, me.