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What to expect before accepting the offer to become Engineer #1 at a startup

The Next Web

Startup employees are granted common shares out of something called an option pool. It is typical for employees to vest their options over four years with a one year cliff, which means a new hire must stay on the company for at least one year to see any shares. What’s everyone else getting? How much do they cough up?

Engineer 129
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Founders versus early employees

www.startupnorth.ca

They are rough estimates.Any one have sample option grants in Canada? I would assume that they are very similar but given the lower valuations and this may change the salary/options mix. How many early employees are forgoing salary? Are the percentages different? The founders will each take a major chunk (e.g.

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Startup Equity For Employees

www.payne.org

5 Stock vs Options. 7 Salary vs Equity. Companies raise money by selling new stock after the board of directors authorizes the sale to investors. Salary vs Equity. Most startups look at your compensation as a total package: stock plus salary. Startup Equity For Employees. From Payne.org Wiki. 3 Dilution.

Equity 56
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Be careful about equity and options!

Berkonomics

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if there is no interest, to outside investors. Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%.

Equity 62
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Careful about equity and options in early stage businesses

Berkonomics

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if no interest, to outside investors. How many options are appropriate for a grant? Director level employees are typically granted ½%.

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How to Fund a Startup

www.paulgraham.com

For example, VCs generally write it into the deal thatin any sale, they get their investment back first. Some VCsnow require that in any sale they get 4x their investment backbefore the common stock holders (that is, you) get anything, butthis is an abuse that should be resisted. So after this the option pool is down to 13.7%). [

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Equity is the currency of early stage businesses.

Berkonomics

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if no interest, to outside investors. Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%.