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Should You Offer Equity Compensation to Employees?

Up and Running

More often than not, equity compensation is an attraction and retention tool, rather than a replacement to salary. Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. When it’s the “norm” for your industry.

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The Corrosive Downside of Acquihires

Both Sides of the Table

If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. (If So why not announce big, hairy audacious goals on recruiting the best mobile talent with sign-on bonuses and retention plans? We get the mechanics.

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Facebook S-1: The Most Anticipated IPO in a Decade ? AGILEVC

Agile VC

As a result, the amount these employees pay the company for these exercises is non-trivial… in 2011 these common stock purchases generated about $1 billion in cash for Facebook. Im a former Silicon Valley entrepreneur turned East Coast VC. billion in cash profit last year. link] leehower. Great point Steve.

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