I generally like the sound of this, although really what it amounts to is a single trigger on a liquidity event. The dynamic pool part is the interesting bit.

I generally like the sound of this, although really what it amounts to is a single trigger on a liquidity event. The dynamic pool part is the interesting bit. Things I like - Aligns employee incentives strongly with founders/investors in terms of seeking an exit. Some people now just jump from company to company collecting equity. - When a company can expect an employee to be around for awhile and vice-versa, both invest more in each other. Some questions and concerns - Not all companies are going to reach a liquidity event and thus it may disadvantage employees if they feel more locked in to staying onboard in a situation with limited upside. - This may prompt more job candidates to only join companies which are sure-bets, and hurt companies with that crazy idea. - Such a deal would probably even out with current offers of equity because time is equal to money, but the increased amount of equity will be used as leverage to reduce salary. - Acquiring companies are going to hate this with a passion as they rely on there being some vesting time left in order to keep acquired employees. - Although perverse, the dynamic pool aspect might make the first 15 employees try to get the others to leave since the upside of doing so is high. Likewise, if the pool is a certain size, there might be some resentment if the company hires more people and reduces equity for everybody else. - What is preventing the company from simply adding more people to this coveted pool once one leaves, reducing the advantages the first few had?