Re:Questions candidates can ask about equity compensation
by gumby on Saturday June 04, 2022 @08:16PM
(#31626577)
> I can't blame them for selling it…
Yes you can, and should.
I don’t try to sell candidates on the possible stock upside because I don’t want to provide investment or tax advice. I’m not licensed to do so; I have a company to run. It’s up to them to decide if they want to early exercise or if they think it’s fair not.
I do the opposite: tell the candidate the number (that’s what the board approves) and what FD percentage it represents. If they ask if it’s a reasonable amount I explain how much we give for a given position plus how that is modulated by company stage. I always allow early exercise.
In 30 years of startups nobody has ever complained.
Yes you can, and should.
I don’t try to sell candidates on the possible stock upside because I don’t want to provide investment or tax advice. I’m not licensed to do so; I have a company to run. It’s up to them to decide if they want to early exercise or if they think it’s fair not.
I do the opposite: tell the candidate the number (that’s what the board approves) and what FD percentage it represents. If they ask if it’s a reasonable amount I explain how much we give for a given position plus how that is modulated by company stage. I always allow early exercise.
In 30 years of startups nobody has ever complained.