The Balderton Essential Guide to Employee Equity
Today we are really excited to share the next instalment in this series - our report on Employee Equity.
You can download the report here.
Equity is at the heart of the technology ecosystem. The shared belief amongst a company’s founders, investors and employees is that it will leverage technology to build a rapidly growing company that will create enormous value. It is only fair for that value to be shared amongst those who created it. Done well, it can create life-changing moments of wealth creation for founders and employees while delivering loyalty and a highly incentivized workforce for a company and its investors. Getting this process of value sharing just right, however, is phenomenally complex.
And that’s where the latest Balderton Essentials report, The Balderton Essential Guide to Employee Equity, comes in. The report covers everything you need to know — how equity compensation works, why it should be used, how to engineer a fair and efficient plan and, particularly relevant for the companies we work with, how to navigate the many complex issues that implementation entails in different European companies.
What's in the Guide:
Why give equity to employees
What is employee equity
How much equity is needed for the ESOP pool and how does it evolve
How much equity to give an employee
How to set a strike price for employee options
How to help employees understand and value their equity
Details of vesting, exercise, and refresh
Variations on stock options
Presenting to the board