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thanks for your answer Markstansbury, let say the co founder owns 35% of the company...in a typical start up, when do you allow them to vest the last portion? a

by hajiss 16y ago

thanks for your answer Markstansbury, let say the co founder owns 35% of the company...in a typical start up, when do you allow them to vest the last portion? after a year, 2 years or when the company gets profitable?

markstansbury 16y ago
Do you mean the last 15% to bring to 50% ownership? Without knowing the specifics I would think the best idea is to vest incrementally every week or so. Also make sure you've got accelerated vesting upon sale or IPO. (That's a nice thing to give your employees too.) And consider a right to buy back shares at cost upon for-cause termination. I've never seen or heard of vesting upon profitability. I don't know if that's something that is done, but I would be hesitant to be on either side of that deal.