Understanding the Terminology in Your Employee #equity Offer
▻https://hackernoon.com/understanding-the-terminology-in-your-employee-equity-offer-7d27790c8f66
Illustration by David HuangNo one — with the possible exception of finance experts — looks at their equity package and thinks, “Yep, makes sense.”To help clarify, we’ve put together a short glossary of terms you’re likely to see in your offer, along with literal — and more practical — definitions.1. Four-year monthly vestYou thought you were getting that fat 0.1% equity stake the moment you signed? Think again, friend. You’re going to receive it piecemeal, on a regular schedule referred to as a “vesting schedule.” Think of it as your company’s layaway plan for paying out your equity grant.Literal Definition: You will receive a fraction of your equity package each month, and if you’re still working there in four years, you will have your entire package.Practical Definition: You’re probably not going to earn (...)
#startup #equity-terminology #employee-equity-offer #equity-offer