In a startup’s early days, nothing matters more than attracting and retaining talent. That said, it’s important to attract the right talent. Employees who feel vested and part of the team are more committed to their companies. Equity plays a key role in aligning incentives, clarifying expectations, and deliverables between companies and employees. Annie Webber, Founder and CEO of LegalHero, and David Ehrenberg, Founder and CEO of EGFS, took us through the ins and out of Sharing the Pie. 3 most common ways to make equity grants: 1. Stock options: give users the right to purchase sales in the future at a price specified on the date of the option grant. 2. Restricted stock: an outright grant of shares that is issued subject to certain restrictions. 3. Restricted stock units (RSUs): represent a (non-forfeitable) right to receive shares once restrictions have been met. There are other ways to give equity: … Continue reading
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