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Options about your Options – How to think through your company’s option program

VC Adventure

The data change over time and, frankly, I’m less interested in debating what % grant your Director of Product Management should receive given your stage of company and capital raised, and more interested in the structure of your program. I’m also not going to give option bands for various positions.

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The New Deal – A Founding CEOs Value is Non Linear

Steve Blank

As a founder I fought with VC’s over vesting as they brought in a new CEO and walked me out the door. As a board member I negotiated with founding CEO’s over vesting when I thought it was their time to go. The fallacy is believing that a founders value is evenly distributed over four years. Where’s My Liquidity Event.

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6 Best Practices to Set Up an ESOP for Your Business

Up and Running

When used correctly, an ESOP is a great way to build a culture of trust and respect between employees and company management. Federal income tax-free earnings until employees take distributions. For example, plan to set aside 10-15% of the total ownership into an ESOP pool, and allocate the options over a 3 to 4-year vesting period.

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Attention Entrepreneurs: Walk Before You Run

Up and Running

In the business plans that I review, I often come across glaring gaps that are simply insurmountable; e.g. plans to launch new alcoholic beverages in the UK without understanding the capital costs or the power of distribution in that industry. The list goes on. To be clear, I’m not anti-entrepreneurship. Collectively, we need to do better.

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Should You Share Equity with Consultants?

www.inc.com

Leadership & Managing | Tuesdays. LEADERSHIP & MANAGING. Managing Creativity. Durkin , managing partner with the Boston -based law firm Lucash, Gesmer & Updegrove LLP. He suggests granting the options on day one but making sure they vest only upon satisfactory completion of the project. Technology | Thursdays.

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Leading Edge or Bleeding Edge: The Make or Break Difference

Up and Running

Most successful business plans entail launching a new product, service, or distribution outlet that attacks existing market competitors on what military planners would term an exposed flank. These types of miscalculations are often very hard for senior managers, venture capitalists, or even entrepreneurs themselves to discern.

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Changing Equity Structures for Early Startup Employees

www.instigatorblog.com

Good human resource management practice can see you motivate your staff to give their very best without necessarily turning them into intrapreneurs, because when all is said and done, most people looking and taking up jobs do so because the don't to get into the intricacies of company ownership.

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