Are vested shares the best way to go for a startup company to bring on new people?


We have a Hong Kong company and are trying to launch. We have limited funds but are thinking of hiring someone and paying in shares. However, we don't want to just sell shares and watch our new partner go on vacation.

Are vested shares the best options? Can this be done by the directors of the company, or is a lawyer/accounting firm required?

Hiring Legal Agreements Shares Vesting

asked Jun 17 '14 at 09:16
11 points
  • Worse than going on vacation, your new partner could quit. Because their shares are vested, they can walk away and keep their equity in the company. – rbwhitaker 3 years ago
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2 Answers


You definitely want everyone to be on a vesting schedule. All co-founders should be on a vesting schedule as well, not just your employees.

We use a 4-year schedule with a 1-year cliff (which means if someone leaves before 1 year, they don't get to keep the vested equity/options).

The vesting schedule is usually specified in the employment agreement. You could find a template on Docracy if you want to do without a lawyer for now.

answered Jun 17 '14 at 13:12
Nishank Khanna
4,253 points


The idea of legal Salah seeded back in 2014 but come into opration 26 nov 2015 In India, there is lag in transparent pricing of legal and taxation matters dealt in India through various professionals. Hence, Legal Salah providing platform where all legal and taxation work can be simple and accessible to all individuals in India. We have started with 200 sq. ft. with only 4 people and now we have team of 15+ core members along with more than 3500+ registered professionals with us that enable us to cater 150+ cities of India with physical offices in Kolkata Delhi Patna Jammu kashmir and Dhanbad. The key for success is persistence and patience for any startup. Short term goals are equally important with long-term goals. Most importantly respect your team members because of them your company has brand not because of any single individual.

answered Nov 2 '17 at 10:17
Legal Salah
1 point

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Hiring Legal Agreements Shares Vesting