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I'd like to add the word "can" in there. "Equity grants [can] take months." They shouldn't though. They can take as little time as it takes the president or CEO
by throwaway2016a 9y ago
I'd like to add the word "can" in there. "Equity grants [can] take months." They shouldn't though. They can take as little time as it takes the president or CEO to hit the "print" button and get out a pen if the rules are laid out clearly and voted on ahead of time by the board.
- jforman 9y agoAll three startups I have been involved with have had board-level approval for individual equity grants. I have never seen any real push-back on them, but I have also never heard of the board relinquishing control over something so vital. The employment contract guarantees the equity subject to board approval. I'm not quite sure why people are making such a big deal out of this.
- throwaway2016a 9y agoWhat you describe is certainly common. I have a different experience and I like what I have seen better. > The board agrees all new employees get X options with a 1 year cliff and 4 year vesting without additional approval so long as total options granted does not exceed Y. The board only needs needs to be involved if X or Y need to be changed. Having the board bother themselves with every little hire is just ridiculous. They have better things to do. Plus if the options are defined on paper the company can't be accused of favoring certain classes of employees differently.