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Founder Agreements – Vesting, Vesting and more Vesting

High Contrast

To paraphrase the famous line from The Graduate “I have one word for you “vesting.’”. Time based vesting is often a good idea. 

A Different Approach to Refreshing Stock Option Grants

Feld Thoughts

For many management teams, especially in rapidly growing, or mature companies, it’s an important part of their existence as culturally we’ve oriented compensation, bonuses, and future compensation around an annual cycle. embrace this – my goal is to help these entrepreneurs and management teams win.

Change of Control Vesting Acceleration

ithacaVC

I am a big fan of change of control option vesting acceleration, particularly for the executive team.  I am probably not in the majority of VCs on this topic.    Quick background: 1. Normally employee options vest over 4 years, with 25% vesting after year 1 and then the balance pro rata (monthly or quarterly) over the remaining 3 years. 2.

The “I-just-got-bought-by-a-big-company” survival guide

Scott Weiss

So here was the big dilemma: I had signed up for 24 months of re-vesting my founder’s shares that wouldn’t begin until the deal was closed and it already seemed like a paint-drying eternity. I was pretty sure that I wasn’t cut out for a big company but I just couldn’t spend the next two years watching the clock or I’d spiral into insanity.

7 Things Great Leaders Always Do (But Mere Managers Always Fear)

Fresh Inc.: The Staff Blog

Are you a great leader or just a mere manager? One of my bosses had a fancy title, but everyone referred to him simply as a "manager."

How To Launch a Startup and Avoid Ending-up in Jail

Scott Edward Walker

Introduction I love working with startups – and trying to protect founders and watch their backs.  Potential Criminal Violations Employment Laws. 

8 Ways To Maximize The Value Of Your Startup Stock

Startup Professionals Musings

This is the purpose of a vesting schedule, which issues allocated stock over time. Key founder vesting should have no cliff. In the U.S.,

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When Founders Leave

StartupCFO

If you raise VC (beyond seed), you will very likely have to re-vest all or a portion of your shares. Set up founder vesting.

Young CEO = Innovative Company

Deimar

As Daron Acemoglu points outs "If you''re an old manager, [the company is] your baby. Related Post: How-to Spot a Great Leader?

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.”

AngelList new employee reading list

Venture Hacks

6-year vesting. Engineering Management by Yishan Wong, ex-Facebook Engineering. I do the onboarding for all new AngelList team members. Part of it is asking them to read the following (many candidates have read these before they even come in for an interview). Culture. Startups are here to save the world. Execution. 1-man startups.

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Equity for Early Employees in Early Stage Startups

SoCal CTO

Unlike the founders, the employees have to wait until their grants vest, working at a company no longer of their choosing for two years.

How does equity dilution work for startups?

Gust

Equity dilution works when the same pie is divided among more people. original post can be found on Quora @ [link] *.

Going Global: 8 Things to Consider If You Want to Expand Your Business

Up and Running

Managing a Business Business Expansion business growthToday, the world is remarkably small. Research with Google Analytics. Business model.

Dude, Where's My Cash? How VCs Manage Reserve Startup Funds

ReadWriteStart

Part of that strategy involves picking the right VCs based on experience, success and, yes, even how well you get along. Sponsor. What are reserves?

How to Launch Your Own Startup Part 4 (money, culture and becoming a manager)

The Next Web

But never give away shares without vesting. Prepare to become a manager. They help you to become a seriously good manager.

Conviction

StartupCFO

People who have the stomach to ride the roller coaster with you. - You need it as you grow and start building a management team and adding other senior members. Growing Big Management 1800flowers cbinsights Series A Conviction : This is a word we use a lot at FreshBooks. When you look at the World through that lens it clarifies things.

How to Quit Your Job

OnlyOnce

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.  Business Human Resources Leadership Management Return Path Startup CEO How to Quit Your Job. For me, there’s a Return Path Way. Hopefully you know that. 

6 Ways For Startups To Reduce Operating Costs

YoungUpstarts

Startup employees are unique because they typically have a vested interest in the success of the company. by Morgan Sims. Remain Flexible.

4 Top Myths About Start-up Pay

Altgate

They soon learn that the rest of the management team doesn’t feel the same way, and often lose their best hires when they refuse to pay market rates.

Startup Lifecycle - Lean to Fat, Launch to Scale - Video

Fred Destin

Do reverse vesting — It’s founder friendly. You can’t manage what you can’t measure. see my answer on Quora ). Start. Launch. Build.

Here's Why Innovative Companies Have Such Young CEOs

Fresh Inc.: The Staff Blog

Why the difference? "If you''re an old manager, that (company is) your baby," lead author Daron Acemoglu says.

How to Manage Your Portfolio Like a Business

Fresh Inc.: The Staff Blog

They are the life vest in stormy seas. In your company, you focus on what's coming--not what happened last year. Even a yield increase to 2.6%

How many co-founders should you have?

StartupCFO

As you build a company you have two groups of people (well, three actually): Founders, management team members, and everyone else.

Startup Equity For Employees

www.payne.org

Vesting. Vesting. You usually dont get all of your stock up front; it vests over a period of time, starting from your first day at work. Vesting parameters vary widely, but a classic model is 4 year vesting, a 1 year "cliff", and then monthly or quarterly vesting after that. Startup Equity For Employees.

Your Kumbaya Factor

StartupCFO

It’s common practice for people to vest 1 year of options and one company, then move on to the next – building a portfolio of vested options. Growing Big Management Culture Freshbooks Fundera Hiring kumbaya mission purpose I was having breakfast recently with Andres , one of the founders of Fundera. love this!

10 Tough Quandaries That Lead Entrepreneurs Astray

Startup Professionals Musings

Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. The right time to start dilemma.

4 Top Myths About Start-up Pay

Fresh Inc.: The Staff Blog

Vesting is a tailored way to keep execs on board. I've been collecting data about startups and compensation since 2001. Myth number 1.

The Loneliness of Success that Nobody Talks About

Both Sides of the Table

Success can be lonely because as with Kurt and Amy you find yourself surrounded by a bubble and often a bubble with vested interests in your actions.

Organizational Debt is like Technical debt – but worse

Steve Blank

suggested that were seven things he could do – some quickly, some over time: Put together a simple plan for managing this next wave of hiring.

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Explaining carried interest

The Equity Kicker

Most Managers of venture capital funds in Europe get 20% of the profits on the entire fund once a minimum hurdle has been returned. If

7 Lessons They Don’t Teach You In Crowdfunding School

Startup Professionals Musings

Be prepared to manage a crowd of inexperienced investors. Keep all IP details close to the vest. How can you go wrong?

Why Aren't Your Employees Owners?

Small Business Force

Create vesting over time. Vesting means the period over which the employee actually gains ownership of the stock options.

8 Questions Before You Join Or Invest In A Startup

Startup Professionals Musings

Calculate employee stock option values and vesting times, as well as salary. Think twice before you jump in. Marty Zwilling.

What Just Happened With OnLive?

Feld Thoughts

Usually the vesting clock resets completely; sometimes a new owner will be extra generous and offer a shorter vesting term. Rather than screwing the employees to enrich management, this feels to me like a pretty employee friendly approach. By the end of the weekend the reporting was more thorough and balanced.

12 “it” social and content careers to watch for in 2014

The Next Web

Content Manager. Even if it flops, it will still produce tens of thousands of specialized jobs for social media managers and content developers.

All CEOs Should Be An Outside Director For One Company

Feld Thoughts

You’ll have a peer relationship with another CEO that you have a vested interest in that crosses over to a board – CEO relationship. You’ll get exposed to new management styles. Being CEO of a fast growing startup is a tough job. Now, imagine you are a CEO of a fast growing startup. You’ll extend your network.

Validate The Pedigree Of A Startup Before You Jump

Startup Professionals Musings

Calculate employee stock option values and vesting times, as well as salary. Think twice before you jump in. Marty Zwilling.

Do Less. More.

Both Sides of the Table

And even this can’t stop their employees from fleeing after two years of vesting to move on to the next hot startup. ” I spend more time helping manage Upfront Ventures so that we as a firm are better prepared as a team to succeed vs. just any individual. We are experiencing a frenetic time. What is one to do? Do less.

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5 Simple Tips On Working At A Startup

Up and Running

Don’t expect to have a real “manager” If you want or need a boss, work for a big company. 7. Life is short. 6. Be informed.