Alisa J. Baker
You may find a gap between what you expect from your equity compensation and what you receive. Often the problem stems from the complexity of the related documents and rules. Learn about them, and understand why you must focus on conflicting or inconsistent provisions.
Alisa J. Baker
Part 1 looked at the problems of conflicting or inconsistent provisions among different documents. Part 2 discusses which existing documents and rules nonfounder executives must consider when negotiating for equity compensation during the early (pre-public) stages of a company's development and growth.
Alisa J. Baker
Part 3 of this article series reviews the steps you must take to preserve your equity rights at or before the termination of your employment, and in any severance arrangement. The impact depends on your specific agreements, the company's overall plans and policies, and—in many cases—the reason for the termination.
The days of pocketing stock grant gains, leaving the company, and moving to a direct competitor may be over. Your company may put noncompete forfeiture provisions in your equity awards.
A down market provides ideal circumstances for negotiating a larger stake of equity compensation as part of your pay package. With companies looking to conserve cash and find effective ways to recruit, retain, and motivate executives and key employees, your interest in this type of compensation may be well received. This article explores the possibilities you may want to consider if this opportunity arises.
Get a sense of what you should, and should not, expect in the terms of your stock option grant. A major survey of companies looks at trends in vesting schedules, post-termination exercise rules, and other plan features.
Edwin L. Miller, Jr.
Employees in startup companies often have misconceptions about their stock options and restricted stock. Understand what could happen to your stock options or restricted stock in venture capital financings, in an acquisition, or in an IPO. Part 1 looks at M&A deals; Part 2 analyzes IPOs.
SURVEY DATA UPDATES!
How typical are your equity awards? Stock plan surveys let you compare the terms of your grants with the common practices of many companies. Part 1 focuses on types of equity award, reasons for making grants, vesting schedules, and option exercises.
How typical are your grants of stock options or restricted stock/RSUs? Stock plan surveys let you compare the terms of your grants with the common practices of many companies. Part 2 focuses on grant guidelines, option expiration, job termination, and corporate changes of control.
Understand the range of issues in structuring your employment contract, including provisions on stock options and restricted stock.
The New York Times
This interactive article presents the compensation and wealth accumulation of CEOs at many large companies. The figures, including the value of stock and options awards, are calculated from companies' proxy statements.
Learn basic ways to calculate whether trading salary for equity makes sense.
Return to top of this page
In most instances, stock grants are subject to the same types of practical limitations as negotiations for your cash compensation. For example, an employer may...
The likelihood depends mainly on your position, its salary grade, and/or your company's industry. Surveys of common practices among companies show that...
Changes in executive compensation and equity pay practices stemming from the downturn of 2008 and 2009 were extensive. In general, during the recovery the focus in stock compensation has shifted...
Not usually. An exception would occur if your...
If your skills are in great demand, employers may...
If a company makes a grant with a specific vesting schedule and the schedule is later shortened from its original terms, the accountants will usually...
During the early stages of a company's existence (e.g. up to the first round of venture financing) you may be able to get...
Return to top of page