Ideally you should get new ESOPs as part of your yearly performance appraisal. If you are, check with your manager/hr.

Software Engineer

Let’s say current salary is : Fixed + Variable + ESOPs (over 4 years)  For 4 years you get total amount of ESOPs promised.  Now once the 4 years are over, do you renegotiate your salary with your c...

Welcome to Indian Startups's Private Community

Let’s say current salary is : Fixed + Variable + ESOPs (over 4 years)

For 4 years you get total amount of ESOPs promised.

Now once the 4 years are over, do you renegotiate your salary with your company to ask for additional ESOPs yearly or like just continue with Fixed + Variable from year 4 onwards ?

What happens to your compensation once the ESOPs vesting period is over ?

Corporate Strategist

What happens to your compensation once the ESOPs vesting period is over ?- Grapevine

Welcome to Personal Finance's Private Community

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?

Software Developer

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?

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?

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

[Need help] I have 3 lakhs of Pine Labs ESOPs each year. Got this news yesterday where Neuberger berman has reduced Pine Labs valuation by 39%. Does this mean when I try to cash out 3 lakh ESOP, the actual value would be 39% lesser?

Please share the knowledge you've about these two!

ESOPs vs RSUs

Product Owner

During appraisal cycle I had asked for a hike in Salary after knowing I’m getting peanuts. 

Manager: Have ESOPs we will do buy back in next year and like I have gotten 2-3 ESOPs but no real money hike. 

Is this happening with you all? How do you deal this? Is it time to quit the org?

My best thing about manager

Analyst

How much does a core team member gets in equity in an early stage startup?

Product 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

Welcome to Product Managers's Private Community

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

Hi folks, 

I'm Kashish, the CEO of EquityList and Founder of Cloud Capital which I run as a solo GP.
A little bit about what we do: 

EquityList is a full-stack equity management platform by AngelList India. Companies across India, US and Singapore use EquityList to manage their cap table, stock options (ESOP/SAR), shareholders, and related compliances. Managing equity for 10k+ stakeholders, 250+ companies and ~$1B in stock options.

Cloud Capital has deployed $8M+ in 55+ startups such as Airmeet, Rupifi, Orange Health, DevRev, ZET (OneCode) and others. I've also angel invested in startups such as OSlash, Atlys, Chronicle, Even Healthcare and others.

Excited to do this AMA, and look forward to answering any of your questions about ESOPs, cap table management, investing, entrepreneurship, and more!

LinkedIn: https://www.linkedin.com/in/kashisharma

Live AMA: Hey everyone, I'm Kashish, CEO of EquityList. Ask me anything!

I’ve been out of this game for a while so pardon my ignorance. What are you folks asking for as stock compensation these days?

My understanding is that if you’re being paid ₹100 as base pay, a ₹10-20 variable and ₹100 as ESOPs that vest over 4-5 years in equal parts is fair game. And you should continue to get at least ₹100 fresh grants each year if you’re a high performer. 

How did it go for your negotiation? 

And how did you ensure you actually get value for ESOPS? 

Most startup ESOPs are 100% bullshit and you may not get a rupee even after a decade of working.

How should you negotiate stock compensation ?

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

1. What are the pros and cons of Fixed Salary and RSUs/ESOPs?
2. Do companies stop increasing fixed component after certain number of years of experience?

Pros and Cons of Fixed Salary vs RSUs/ESOPs

Data engineer

I have my senior managers who are 32-33 and are making 1cr+ per year.
What do people do at the age of 40 or 50
Is there a scope for further salary increments or role increments?

Unless someone works at a company like HUL, what is the future?

Long lasting in corporate

Hi, I have an ESOPs related question. Appreciate any inputs. 

Consider a Series B startup providing an employee with 5000 shares. After 2 years, 2000 shares are vested and exercised by the employee. The stocks were never liquidated because the company didn't conduct buyback nor went IPO. 

Now, assume the company lays off that employee after 2 years,

- Can he still hold the vested and exercised 2000 shares? 
- If yes, then can he sell those stocks during future buyback even if he isn't an employee?
- Will the company provide accelerated vesting for the remaining 3000 shares during layoff? (not mentioned on offer letter)

What happens to your compensation once the ESOPs vesting period is over ?

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