"Is there a “typical” equity plan design for start-ups?"
This question was asked at a recent webinar, now available on-demand:
"Best Practices in Equity Financial Reporting"
Please add your thoughts about it below. Thanks!
Typical Startup Equity Plan
Answers
The answer, "it depends" comes to mind with this question. But there is a common type. Most start-up companies roll out a standard stock-option plan, which includes incentive stock options (ISOs) for employees and non-qualified stock options (NSOs) for non-employees. The standard "Silicon Valley" start-up vesting schedule is a 4 year, 1 year cliff, meaning that the option fully vests after 4 years of continued employee or service to the company.
-Scott
Armanino LLP
Filed Under:
FP&A