News & Analysis as of

Startups Stock Options

Pillsbury - Propel

Equity Compensation: Navigating 409A Valuations

Pillsbury - Propel on

Private company clients frequently ask us about granting compensatory stock options to their founders, employees and other service providers, including board members, consultants and advisors. Options and other equity awards...more

BakerHostetler

Common Bad Decisions Startups Make During the Romance Phase

BakerHostetler on

Entrepreneurs with sound business ideas commonly make decisions that hinder early growth and capitalization. During the “Romance Phase,” the idea for a new product or service is fully developed, the initial team of talent is...more

Pillsbury - Propel

Authorized vs. Issued Shares

Pillsbury - Propel on

Our startup clients are sometimes asked by investors or government agencies to provide their number of authorized and issued shares—the difference between the two isn’t always obvious but is critical to understand....more

WilmerHale

Onboarding for Service Providers at Early-Stage Companies

WilmerHale on

For startups and early-stage companies, the onboarding of service providers is both a strategic necessity and a legal challenge. In this blog post, we will discuss the key considerations, best practices and other valuable...more

WilmerHale

Repricing Options 101: What Startups Need to Know

WilmerHale on

Equity compensation is perhaps the most critical element of any startup company’s compensation package, helping to bridge the gap between the cash compensation a startup can offer against the more significant cash...more

WilmerHale

Commonly Considered Option Program Enhancements: Part III - Granting Options with Extended Post-Termination Exercise Periods

WilmerHale on

In this four-part series, we explore several of the most commonly-considered option program enhancements emerging companies may consider as they strive to make their stock option programs as compelling as possible to recruit...more

Morrison & Foerster LLP

What Is an 83(b) Election, and Do I Need to File One?

If you’re reading this, chances are this is not the first time you’ve heard of the 83(b) election (and if it is, then definitely keep reading). The “83” in “83(b) election” refers to Section 83 of the Internal Revenue Code,...more

Goodwin

What are “Double-Vest” RSUs and Why Are They Making Headlines?

Goodwin on

Double-vest restricted stock unit awards (Double-Vest RSUs) made headlines a few years after the end of the Great Recession when they were awarded by pre-IPO tech giants. Since that time, it has become increasingly common for...more

Mintz - Employment Viewpoints

Employees’ Perspective on Source and Use for Series Financings and Acquisitions

A primary goal of many, if not all, founders of start-ups and similar early-stage companies is to grow the company in a way that makes it an attractive target for outside investment and/or acquisition. For many companies,...more

Lippes Mathias LLP

How to Motivate Your Team with Equity Compensation: What Startup Companies Need to Know

Lippes Mathias LLP on

Cash-strapped startup companies often find themselves looking for creative ways to engage and retain qualified people. One common way is to offer different types of equity compensation. ...more

Lowenstein Sandler LLP

What Non-US Startups Need to Know About Granting Stock Options

Lowenstein Sandler LLP on

Partners Dotan Barnea and Darren Goodman talk with Taryn Cannataro about what a startup outside of the United States should do if it is considering granting stock options to employees in the U.S. Such situations give rise to...more

Lowenstein Sandler LLP

What Every Start Up Should Know About Stock Options

Every private startup company that grants stock options or is considering granting stock options needs to consider major issues that could have long ranging impacts: proper documentation and approval of all stock option...more

Patterson Belknap Webb & Tyler LLP

Equity Compensation Highlight: Stock Options and Restricted Stock

Start-up and early stage companies commonly offer equity compensation to attract talent, encourage employee retention, and align company and employee interests on business objectives. There are several different types of equity...more

Foley & Lardner LLP

Equity Incentive Pool: What, Where, Why and How Much?

Foley & Lardner LLP on

An equity incentive pool is a pot of shares that are set aside for stock options or restricted stock to help a startup recruit, retain, incentivize and align key talent for long term value creation and success. Startup...more

Orrick, Herrington & Sutcliffe LLP

OLNS#8: ESOPs, VSOPs & Co – Strukturen / Steuern / Praxisthemen

Mitarbeiterbeteiligungsprogramme spielen für junge Unternehmen eine entscheidende Rolle bei der Gewinnung und Bindung von Top-Talenten. Eine Beteiligung am Unternehmen belohnt Mitarbeiterinnen und Mitarbeiter dafür, dass sie...more

Fenwick & West LLP

De-Mystifying the “Flip:” European Companies Coming to the US

Fenwick & West LLP on

There a lot of matters to consider when a European company decides it wants to open operations in the U.S., and one common structure for doing so is anecdotally known as a “flip”—inserting a U.S. corporation above a European...more

Bass, Berry & Sims PLC

Key Considerations for Emerging Companies: Equity Compensation

Equity compensation – which links the self-interests of a company’s service providers with the interests of the company and its investors – is a compelling incentive for start-up companies to attract and motivate employees...more

WilmerHale

In Case You Missed It: Launch Links - March 2021 #2

WilmerHale on

Some interesting links we found across the web this week: VC Firms Strive to Improve Diversity With New Industry Certification - Venture capitalists are increasing focusing on diversity inclusion, both in their own...more

Hutchison PLLC

Motivating Your Startup’s Team: Restricted Stock or Stock Options?

Hutchison PLLC on

There are a variety of forms that equity compensation can take, but the two most prevalent in the startup environment when the startup is a corporation are restricted stock and stock options. Many new entrepreneurs are...more

WilmerHale

In Case You Missed: It Launch Links - May 2019 #3

WilmerHale on

Some interesting links we found across the web this week: Not So Fast…the (Unexpected) Consequences of Allowing Your Employees to Early Exercise Options - There are times when the early exercising of stock, options...more

Mayer Brown Free Writings + Perspectives

Unicorn Stock Options and Regulatory Reform

In a recent paper titled “Unicorn Stock Options – Golden Goose or Trojan Horse?” Anat Alon-Beck analyzes the issues arising in connection with stock-based compensation awarded to employees of unicorns given the trend toward...more

Orrick, Herrington & Sutcliffe LLP

Le Opportunità Per Le Start-Ups Innovative

Ripianamento perdite più facile — gestione e cessione delle perdite - In caso di perdite sistematiche, la startup innovativa gode di una moratoria di un anno per il ripianamento delle perdite superiori a 1/3 (termine...more

Fox Rothschild LLP

Four Considerations For Advisor Option Grants

Fox Rothschild LLP on

Startup clients often rely on independent contractors and advisors during their early stages but do not have the cash to pay them, so they turn to equity compensation. Stock options are a great incentive tool, but founders...more

WilmerHale

Should Startups Extend the Window to Exercise Options?

WilmerHale on

Pinterest did it. Square did it. And Coinbase did it, too. These unicorns have all given departing employees more than the standard 90 days to exercise their stock options. They’ve extended the window to exercise options for...more

Littler

Dear Littler: Does Equity Compensation Count as Wages under Federal and California Law?

Littler on

Dear Littler: We need to hire some key personnel for our new tech company. We intend to offer them equity in the enterprise as compensation. The equity should be very valuable in the long run, and the deal we have in mind is...more

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