Vesting Related Topics 
Steve Blank
APRIL 10, 2019
Startup employees calculated that a) their hard work could change the odds and b) someday the stock options they were vesting might make them into millionaires. The stock trickled out over four years, as you would “vest” 1/48 th of the option each month. Essentially the company sells them the stock at zero cost, and they reverse vest.
Steve Blank
JULY 19, 2010
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. Yet the traditional vesting model ignores this. It’s time to rethink how we vest stock for founding CEOs.
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Steve Blank
MAY 19, 2015
When we did, I asked him about his head of HR, and heard all about what great medical and insurance benefits, stock vesting, automated expense account forms, movie night, company picnics, etc., “Refactoring” organizational debt. I had promised Tom the CEO we’d grab coffee again. the company had.
Steve Blank
JUNE 15, 2010
Will they tailor your vesting to your contribution as a founder? Will The VC Tailor Your Vesting to Your Contribution? Typical vesting of your stock is over a four-year period, yet the founder’s contribution is heavily weighted to the first few years. What startup stage do they typically invest in? Who do they have as advisors?
Steve Blank
OCTOBER 28, 2010
More importantly they had a vested interest in getting the process right. Engineering now felt that they had a stake in making the process better and took a great interest in that mysterious and elusive “customer.” Soon engineers were spending lots of time talking to customers.
Steve Blank
OCTOBER 24, 2017
The founders along with all the other employees would vest their stock over 4 years (earning 1/48 a month). Some founders have three-year vesting. They had to hang around at least a year to get the first quarter of their stock (this was called the “cliff”). Today, these are no longer hard and fast rules. Some have no cliff.
Steve Blank
JULY 28, 2016
Just like a regular passenger plane, except you put on a life vest, goggles, ear plugs, and over all that a half helmet protecting the top and back of your head while enclosing your ears in large plastic ear muffs. And no pay raises make it hard to retain qualified people.
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