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How do you ensure shares don't get diluted as people leave and new ones get hired? I remember this was an issue at an ESOP I worked for. They had to pressure f
by geokon 2y ago
How do you ensure shares don't get diluted as people leave and new ones get hired?
I remember this was an issue at an ESOP I worked for. They had to pressure former employees and buy back shares from them. If you have too many shareholders in the US then your corporate status changes
Granted this is a nonprofit so maybe the rules are different, but the fundamental problem remains
- gunapologist99 2y agoA 10% option pool, set aside at the beginning, should help resolve this, but employees also need to be educated that dilution is just part of life in a startup.