Front-Loaded Vesting: Why Your Tech Offer Looks Different Now
How equity works at Gumroad:
- At the beginning of the year we grant you 100% of your max annual billing amount in unvested options ($200/hr → $364k (52 * 35 * 200))
- As you invoice, you choose the % you’d like to swap for equity. The amount you swap is used to determine how many options... See more
Sahil Lavingiax.comA decade ago, equity compensation — paying employees with company stock — was a perk reserved solely for executives. The practice was largely deployed by companies as a way to optimize retention while keeping their balance sheets clean. Since then, equity compensation has expanded quickly. Within the next 10 years, it’s estimated that public... See more
Niya Dragova • Rethinking Equity Compensation: From Lottery Ticket to Financial Wedge
An Introduction to Stock and Options: for the Tech Entrepreneur or Startup Employee
amazon.com
Equity compensation offers the prospect of meaningful wealth to employees. However, tech workers should think of it as an investment, not a lottery ticket. For employees, this means considering risk, diversification, and taxes proactively. In turn, companies need to realize that the narrative of treating equity as a pledge of loyalty can ultimately... See more
Niya Dragova • Rethinking Equity Compensation: From Lottery Ticket to Financial Wedge
Today, the financial infrastructure for employees paid in equity is nearly nonexistent. For those with little experience in the acronym-riddled realm of equity, the ins and outs of stock as compensation and its tax implications can be dauntingly complex.