Equity And Incentive Compensation Plans For Startups
By Jotham Stein (July 19, 2017, 11:08 AM EDT) -- This article provides a brief introduction to the equity and incentive compensation plans and agreements that startups often use to attract and retain key personnel. To effectively advise startups, and the investors that frequently finance them, it is imperative to understand startup equity and incentive compensation structures, and why and how they may differ from those offered by more mature companies. The following is a general discussion of compensation practices of investor-backed, Kickstarter-funded and bootstrapped startup enterprises, where the founders' intended trajectory is to quickly grow the company (and its value) in the hopes of an exit or liquidity event via an initial public offering (IPO) or sale....
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