Software Developer

How valuable are ESOPs from Revolut? How are the vesting rules?

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Revolut ESOPs

Management Consultant

Revolut ESOPs- Grapevine

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For someone with ~2 yrs post MBA experience in mgmt consulting, exploring exits at Revolut.

1. How is the growth here? Over the next 3-5 yrs, can folks expect 15-20% CAGR cash component growth?

2. What do people do after Revolut? There aren't many mature fintechs that can pay similar?

3. How is the ESOP game playing out? Have there been any but backs? 3-5 yrs into the firm, what is the most likely ESOP allocation? 

4. I've heard working hours are like 10am-7pm. Is that accurate across most teams? Do folks work weekend?

5. How is the culture? Is there top-down aggression/ hard culture? Given everything is remote, do folks ever meet in person?

How are Revolut strategy & ops role?

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I work in a fintech company. Revenue and growth wise we are good, we just got acquired by a large internet platform too. Also, last year has been a tremendous learning for me as well. I like being PM but looking to move out of my current industry (lending) as I want to explore other domains and I feel like my CTC here is somewhat low (18.5 + 1.5 bonus) considering my experience (around 4.5 years). My boss said that I will get ESOPS (around 10 lacs) which I can liquidate around 50% this year. Should I wait for my appraisal to complete (will happen around April) and look to switch or should I start preparing for interviews now itself?

Company is good but CTC pinches

Product Manager

Please share the knowledge you've about these two!

ESOPs vs RSUs

Product Owner

Welcome to Software Engineers's Private Community

Hello All,

I interviewed with a startup recently and some of their policies around esops was something I encountered for the first time in my career, so wanted the expert advice of the community on next steps.

Surprise one: ESOPs will be allocated post probation period of 3 months and vesting starts from there and not the date of joining, I was surprised on this but upon discussion with the company POC I was given a reason of the legal fees involved, which sounds fair but the vesting schedule is it employee favourable?

Surprise two: They shared an offer letter with only the fixed component and said ESOPs will be evaluated post completion of probation period basis performance. Upon further discussing in this I was informed that this is a standard format their VC(sequoia, a16z and elevation) have approved. Is this true because I asked around few of my friends and all of them said esops are an integral part of the startup compensation and all of my and their offer letters historically had esops mentioned along with their value. 

Wrt to point 2 an I asking too much or some practice has changed in the industary which I’m unaware about. Also esop value post probation evaluation, is it employee friendly as the employee is in non negotiable position, isn’t it ?

Should esops component  be mentioned in offer letter?

Software Engineer

ESOPs is offered by an early age startup. What are the things I does be aware about? or ask the founders to clarify with me.

Human Resources

1. What’s the valuation at which buyback is offered? How low compared to last funding round?
2. Is this a buyback or secondary sale?
3. Upper cap on how much can someone sell?
4. Is everyone allowed to participate who has vested stocks?
5. Any other rules?
6. Are you happy?

Meesho Buyback Details

My profile: EX. Founder turned Product+ strategy person
YOE: 5+
ESOPs: 80 lakhs 
Cliff: 1 year
Vesting period: 48 months

I am still thinking after how many years it will be valuable given the liquidity is very rare for ESOPs. Any thoughts?

Are your ESOPs worth it?

Hello guys,
I would want to know what is the benefit of getting ESOPs in an early stage startup?
The startup has a great team and working on a promising product. 
I have been offered a package with somewhat lower fixed component and somewhat higher ESOPs. Need insightful pointers here. TIA :)

Value of ESOPs in early stage startups?

The ESOP is a bit of a blind bet.  
  
 It's paper money that can get you a windfall if all goes to plan and execution, solution, pricing, market readiness amongst other things, all line up over the next few years.  
  
 I wouldn't take a pay cut in lieu of ESOPs.  Keep the real money real and the paper money as an outside bet.

Sales Manager

One of my friends who works for a healthcare startup owns 30 shares at a premium of 75k per share. Company's share value went from 10k in last year to 75k this year due to fund raising event. Is it a good idea to vest now or wait for more returns? Further fund raising events ahead next year. What could be the value after 3 -5 yrs.

ESOP Suggestions

Business Analyst

I have some ESOPs($17k total) at my current company(startup, initial stage), vesting over 4 years with a one-year cliff (25% vested after my first year, monthly after). I have completed 1.5 years here.

I'm not sure if they're actually worth anything(no funding rounds since last 2-3 years, founder is saying he will raise in next 3-4 months), and I'm worried about the taxes when I eventually redeem them. Also I dont know about the redemption process. Could someone explain how this whole ESOP thing work, what the tax implications are, and where I can find more information?

what all should I ask to my manager/HR as we dont have any portal/guide where I can see all these information.
these are the questions I have rn
how to track how much is vested?
how do I redeem them?
can I not redeem them this year, will they still be available to me in next financial year?

ESOPs are confusing

Hi Guys, what is the “Exercise event” for the ESOPs allotted by Indian startup’s?

Note: Exercise event means when the vested ESOPs can be allotted.

I have come across a couple startup’s which have a very sketchy Exercise event I.e 4 years after vesting of “all the allotted ESOPs”

So I’m trying to figure out how other startup’s are doing it in BLR/Metro cities in India.

ESOP Exercise Query

Please share how your company esop policy is. Is it really valuable for employees or just used to create hype and retail talent. 
How many years can you exercise them after resignation?
How did the taxation go if someone has been lucky enough to convert it to cash?
Should esops be a factor while leaving current company or joining a new company?

Are ESOPS really worth it? Has anyone built considerable wealth through it? Share experience.

I am at a VC backed early stage startup. Have been offered Esops.l but have no clue on this.  Can somebody explain to me how can I make money from ESOP by answering these-

1) Do I have to buy them post vesting period? If yes, what amount do I need to pay? Also will there be text on this purchase itself?

2)) When the company buys back from me assuming my vesting was over and I could hold them on, what's the amount I will get? I am assuming it's (no of options * current share price) - (no of options * strike price issued to me). Is that correct? If yes, how is the current share price calculated for non listed company?

3) Now when the company buys these, what's the tax I have to pay? I am trying to understand if availing options and selling options are different and if both have taxes

4) What happens in IPO? Who buys from me? Where can I sell? What price do I sell at?

How exactly does an ESOP buyback work?

Management Consulting

Hi, I am an incoming Fresher @ SF. I wanted to know how do ESOPs work. Like in the overall CTC they include them (about 20L worth) but then they say it's vested over four years. Wouldn't the CTC then actually be a quarter of what they include? Like only 5L?

Also after the vesting period, do the companies stop giving ESOPs? Then does our CTC basically become Base salary + Bonuses?

ESOPs! How do they work?

Generally speaking, is ESOPs fully vested in 4 or 5 years? 
I am aware of 4 years vesting period which is common everywhere. However, the startup where I work decided to introduce ESOPs with a cliff period of 1 year (which is standard) and the remaining shares to be vested will be done in the remaining 48 months. That’s five years altogether. Also, there’s a clause that on termination of employment, the shares should be exercised without which they will be revoked. 
The CXOs say that it’s a standard YC template. Am I being lied to? 
Would it be right to say that this is not an employee friendly ESOPs?

ESOPs vested over 4 or 5 years?

I have 6 years experience. My current base/fixed is 60 LPA. (I also got a 5 lakh bonus and 5 lakh of my ESOPs vested this year making my total vested about 30 lakh. So the total comp is 70). 

I'm being offered a senior engineer position in an early stage startup (as part of the founding engineer team). They haven't given an offer yet.

Being early stage, the emphasis will most likely be on ESOPs. How do I evaluate this and set my expectations? (If I were to switch to a mature company, I believe the hikes usually are between 15-20%? How does this work for early stage startups?)

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