Vesting Questions


0 Votes
0 Answers
1.15K Views
What is the percentage of vesting which is accounted by performance for ESOPs?

Organizations have established ratios between tenure and quality to exercise vesting of options for employees. I was told by a friend that Facebook has a 60:40 ratio for performance:tenure while...

asked Jan 29 '17 at 07:00
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PJ
1 point

2 Votes
1 Answers
772 Views
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...

asked Jun 17 '14 at 09:16
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User33966
11 points

0 Votes
2 Answers
2.38K Views
Clawback vs. vesting

What is the difference between clawback and founder vesting? It seems that the term "clawback" was used in connection with the Zynga and Skype cases Equity Clawback - how to avoid Zynga situation

asked Jul 31 '12 at 19:33
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Jhexp
105 points

1 Votes
0 Answers
566 Views
Standard vesting schedule for brand new startups who haven't yet raised money?

What's the industry standard vesting schedule for new startups who are in the process of raising a seed round, but haven't have closed one?

asked May 31 '14 at 16:42
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Martin Lilly
6 points

1 Votes
0 Answers
533 Views
Do founders get another another cliff after a round of financing?

Assuming you have been running your startup for over a year and now looking to raise a round of funding. Will investors require you to start again with a cliff? I do understand that all co-founders...

asked May 23 '14 at 23:14
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Carlos Newton
7 points

3 Votes
2 Answers
741 Views
What keeps founders in startup after vesting?

Suppose 2 founders started a company. After 4 years and full vesting one founder decides to leave. Then after 2 more years company successfully sold and both receive the same value. That looks...

asked Apr 16 '14 at 13:46
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0 Votes
1 Answers
441 Views
Retaining employees who are close to fully vesting their equity?

To keep it simple, let's say you have an employee who is about to fully vest into getting 2% equity in your company. They're a critical part of your engineering team and you want to try to retain...

asked Mar 26 '14 at 21:11
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John Marsh
30 points

0 Votes
1 Answers
570 Views
What happens to employee stock options if they're vested 3 years (1 year left) and get acquired by another company?

Considering the following scenario: 4 year vesting schedule Employees have been working for 3 years (so 3 years vested and 1 remaining) So 25% of their equity is remaining to be vested What would...

asked Mar 25 '14 at 01:43
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Charles Wright
40 points

0 Votes
1 Answers
503 Views
Accelerated vesting schedule after raising series A?

If the control of a startup changes after a series A round, how much is the vesting schedule accelerated?

asked Mar 23 '14 at 20:57
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Wallace Jimenes
30 points

0 Votes
2 Answers
404 Views
If a buyer wants part of the sale price to vest, is that normal?

Lets presume I'm going to sell my company for $1 million. Would it be normal for the acquirer to want to only pay $500K in cash and the other $500K after 1-3 years of being employed by them? In...

asked Feb 14 '14 at 02:46
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User30124
1 point

0 Votes
1 Answers
484 Views
Choosing a vesting period: 25% per year or 1/36th per month?

How should we structure the vesting period for the options pool? Is there an industry standard that founders follow (and employees expect)? The most common ones seem to be either 25%/year or 1/36th...

asked Feb 13 '14 at 16:13
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Dominick Thomas
56 points

4 Votes
1 Answers
475 Views
Performance based equity for tech team

I'm part of a 4-member software dev team that has received a pitch from a startup to come on board and get their product launched. The deal is 100% equity, so obviously a risky venture for us. I'm...

asked Nov 5 '13 at 19:17
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N00blet
23 points

0 Votes
0 Answers
390 Views
Taking on a co founder

I have been trying to start my own tech startup for a year and half. During this time i built significant IP and invested my time and effort. I have a database of users and mailing list. I have...

asked Aug 19 '13 at 13:48
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Kris
1 point

1 Votes
1 Answers
611 Views
Different vesting schedules among founders

I'm the technical co-founder at a startup. We have soft-circled nearly 50% of our seed round, are participating in an accelerator this summer, are rapidly acquiring new users, and have been in...

asked Jul 25 '13 at 00:28
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Sohan Jain
6 points

5 Votes
2 Answers
2.26K Views
How can a departing co-founder be compensated for giving back already vested shares?

I'm leaving a startup I co-founded, with some of my shares already vested. The other shareholders want me to give back more shares than specified by our vesting agreement. It does seem to make...

asked Jun 17 '13 at 22:37
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Dan
26 points

3 Votes
3 Answers
633 Views
Founder vesting should be KPIs based or time based?

We was discussing the vesting agreement with one of our investors and we proposed a time-based solution. he said that vesting shouldn't be time-based but should depend on KPIs instead. so each...

asked May 28 '13 at 09:36
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Shreef
21 points

1 Votes
2 Answers
1.1K Views
How do I add a new business partner?

We are a tech consulting company and our current group consists of four equity partners. We are interested in adding a new "business" partner, as our current partners are all technical, but we know...

asked Apr 27 '13 at 06:31
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Bd2x
6 points

0 Votes
1 Answers
1.04K Views
Setting a stock vesting schedule retroactively

So here's the the quick summary: Three co-founders with shares equally divided. Started working on it about a year ago, got incorporated about 4 months ago. Now one of the co-founders wants to...

asked Apr 29 '13 at 05:36
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Neon Blue Hair
66 points

4 Votes
2 Answers
990 Views
Left my startup pre-launch. What percent equity is fair?

6 months ago I quit my job to start a startup with two other people. I'm the business guy. I worked full-time on the project from day No. 1, and made substantial contributions to branding, customer...

asked Apr 30 '13 at 08:23
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Ileftearly
21 points

2 Votes
1 Answers
719 Views
How does reverse-vesting work?

How does reverse-vesting work? I understand the company has the right to "buy back" shares if the employee leaves early, but how exactly does that work? What price do they pay per share?

asked May 9 '13 at 13:24
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Gili
178 points