Re:The Open Guide to Equity Compensation
by iancmceachern on Sunday April 13, 2025 @08:11PM
(#43676880)
Its very common, so common that they call them "founders shares"
That’s not what that term means
Re:The Open Guide to Equity Compensation
by iancmceachern on Sunday April 13, 2025 @09:39PM
(#43677314)
Please enlighten us
Founder stock almost always convert to common not preferred. Carta article about it: https://carta.com/learn/startups/equity-management/founder-s...
I recommend researching a topic at least a little bit before going on and commenting on it
Re:The Open Guide to Equity Compensation
by iancmceachern on Monday April 14, 2025 @03:27AM
(#43678917)
This serves my point not yours, the process is often very misunderstood by those being promised the equity, and it's often "converted" in ways that dilutes or outright takes away most of the value by the time the employees ever see financial gains from the equity.
That’s not what happens. Literally TFA covers the term “founders stock”. It really is a meaningless term to refer to common stock held by a founder.
Re:The Open Guide to Equity Compensation
by JumpCrisscross on Monday April 14, 2025 @01:56AM
(#43678454)
Not a separate class of shares. Almost always, founder shares refer to the magnitude of the grant and the voting-rights agreement attached to it. ("Stock class" is a very specific term.)
I’m not saying it doesn’t. Just that founders having a separate class of stock is very, very rare.
> happened in the largest medtech acquisition in history (at the time) its Public knowledge
Supervoting stock is absolutely a thing with companies. We’re not talking about that. We’re talking about start-up founders.