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


2

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
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User33966
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 4 years ago
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1 Answer


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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
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Nishank Khanna
4,265 points

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Hiring Legal Agreements Shares Vesting