You can do stock grants with repurchase rights (which essentially vest); this is how founders usually get THEIR shares. I see no reason not to do this for ever

You can do stock grants with repurchase rights (which essentially vest); this is how founders usually get THEIR shares. I see no reason not to do this for every employee in the first year or pre-Series A at a startup; the tax consequences of a grant of common stock are minimal when the common stock is worth little. We did this at a startup where I worked in 2007. I'd do it in the future. (the one "downside" is that people who have vested become real shareholders, which can trigger some information/reporting rights, but you'd have a very small number of people pre-A, and I'm pro information transparency.) The other thing which would be interesting to me: startups offering shares via their own 401k.