Management Preferred Stock Sales Vesting 
Startup Professionals Musings
SEPTEMBER 27, 2023
Make sure the government waits for a stock sale to collect taxes. Spread stock issuance over an earning period. This is the purpose of a vesting schedule, which issues allocated stock over time. Key founder vesting should have no cliff. Retain the right to reclaim stock from anyone leaving the startup.
Startup Professionals Musings
JANUARY 15, 2021
Make sure the government waits for a stock sale to collect taxes. Spread stock issuance over an earning period. This is the purpose of a vesting schedule, which issues allocated stock over time. Key founder vesting should have no cliff. Retain the right to reclaim stock from anyone leaving the startup.
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Up and Running
DECEMBER 1, 2015
Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. Stock options are issued to employees usually through an Employee Stock Option Plan (ESOP) and include what is called a “vesting period.” Restricted stock: .
Startup Professionals Musings
MAY 18, 2015
Make sure the government waits for a stock sale to collect taxes. Spread stock issuance over an earning period. This is the purpose of a vesting schedule, which issues allocated stock over time. Key founder vesting should have no cliff. Retain the right to reclaim stock from anyone leaving the startup.
Steve Blank
APRIL 10, 2019
Stock options for all employees of startups served several purposes: Because startups didn’t have much cash and couldn’t compete with large companies in salary offers, stock options dangled in front of a potential employee were like offering a lottery ticket in exchange for a lower salary. Not everyone got the same amount of stock.
Steve Blank
OCTOBER 24, 2017
This required a repeatable and scalable sales process, which required a professional sales staff and a product stable enough that customers wouldn’t return it. A founder’s lack of credibility/experience in growing and managing a large company hindered a company that wanted to go public. Some founders have three-year vesting.
The Startup Lawyer
MARCH 1, 2010
The board is set up to consist of 3 directors: 1 director elected by the common (founders); 1 directors elected by the preferred (investors); 1 “independent&# director (i.e., 2) Series Seed Stock Preferred Stock Purchase Agreement. It also scales back the right of first refusal and jettisons the co-sale right.
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