Remove Finance Remove Hiring Remove Management Remove Vesting
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Equity for Early Employees in Early Stage Startups

SoCal CTO

For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. For example, suppose you're just two founders and you want to hire an additional hacker who's so good you feel he'll increase the average outcome of the whole company by 20%. Stock vests for 4 years.

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Best and Worst Practices (Plus FAQs) for Layoffs

OnlyOnce

Financing will take longer than expected to come through, receivables will dry up, and so on. Don’t hire security guards or bring boxes into the office before breaking the news. Cut more employees than you think you need to in order to reduce the risk of a second round of layoffs. Remove poor performers. It absolutely matters.

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Should You Offer Equity Compensation to Employees?

Up and Running

Stock options are issued to employees usually through an Employee Stock Option Plan (ESOP) and include what is called a “vesting period.” The vesting period, often three or four years, frees up a percentage of the options for the employee to purchase the longer they stay at the company. See Also: How to Hire Your First Employee.

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Is Dead Equity Crippling Your Company?

Altgate

One who attracted much attention is David Choe, the graffiti artist hired to paint the company’s first headquarters. Mark Pincus of social gaming company Zynga recently confronted a similar problem when he tried to reclaim equity that he felt he had over-allocated to some early hires. They fail to include vesting terms (i.e.,

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A VC: Employee Equity: How Much?

www.avc.com

The most common comment in this long and complicated MBA Mondays series on Employee Equity is the question of how much equity should you grant when you make a hire. For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. First, a caveat. Let's say the number is $25mm.

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Should You Share Equity with Consultants?

www.inc.com

Finance | Tuesdays. Leadership & Managing | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. LEADERSHIP & MANAGING. LEADERSHIP & MANAGING. Managing Creativity. Durkin , managing partner with the Boston -based law firm Lucash, Gesmer & Updegrove LLP.

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Equity for Consultants – Keep it Simple!

www.mattbartus.com

We will grant him/her X% fully diluted shares up front, and every time he/she makes an introduction, he/she will vest in 100 shares.” People tend to underestimate how much record keeping is involved with managing employees and consultants, and this just adds an unacceptable extra burden. Recent Posts.

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