I always wondered how startups gave ESOPS to their employees and did a lot of reading.
While there was a lot of clutter around esop plan's, board approvals, 10 % esop fund etc... nothing really simplified it.
Just today, I came across this presentation of a rodinhood which simplifies ESOPs - The what, why, when and how of it.
<iframe src="http://www.slideshare.net/slideshow/embed_code/14583931" width="427" height="356" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" style="border:1px solid #CCC;border-width:1px 1px 0;margin-bottom:5px" allowfullscreen> </iframe> <div style="margin-bottom:5px"> <strong> <a href="http://www.slideshare.net/rodinhood/esops-for-startups-by-rodinhood" title="ESOPs for Startups by Rodinhood" target="_blank">ESOPs for Startups by Rodinhood</a> </strong> from <strong><a href="http://www.slideshare.net/rodinhood" target="_blank">Alok Rodinhood Kejriwal</a></strong> </div>
I still haven't got around my head the process that needs to be followed by the board. What if the startup is a one man founded organization and the second person joins on payroll as an employee.. How does the esop get allocated?
Secondly, shouldnt the esop percentage be clear?
Thirdly, how does esop get distributed for an unfunded company? Suppose xyz.com is a bootstrapped company with traction .. how does the value per share gets calculated in such unfunded environment ?
It's a good read nevertheless.
While there was a lot of clutter around esop plan's, board approvals, 10 % esop fund etc... nothing really simplified it.
Just today, I came across this presentation of a rodinhood which simplifies ESOPs - The what, why, when and how of it.
<iframe src="http://www.slideshare.net/slideshow/embed_code/14583931" width="427" height="356" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" style="border:1px solid #CCC;border-width:1px 1px 0;margin-bottom:5px" allowfullscreen> </iframe> <div style="margin-bottom:5px"> <strong> <a href="http://www.slideshare.net/rodinhood/esops-for-startups-by-rodinhood" title="ESOPs for Startups by Rodinhood" target="_blank">ESOPs for Startups by Rodinhood</a> </strong> from <strong><a href="http://www.slideshare.net/rodinhood" target="_blank">Alok Rodinhood Kejriwal</a></strong> </div>
I still haven't got around my head the process that needs to be followed by the board. What if the startup is a one man founded organization and the second person joins on payroll as an employee.. How does the esop get allocated?
Secondly, shouldnt the esop percentage be clear?
Thirdly, how does esop get distributed for an unfunded company? Suppose xyz.com is a bootstrapped company with traction .. how does the value per share gets calculated in such unfunded environment ?
It's a good read nevertheless.