EvenComptroller
EvenComptroller

Advice for a startup noob

Someone please give some advice on how can one negotiate ESOPs? How to negotiate vesting period (if possible)? How to sell ESOPs? Can you sell ESOPs after you leave the company?

Do you need to purchase a company’s ESOPs(at a discounted rate) or are they granted to you when you join?

What all are the params to look at if a start up is providing ESOPs

3d ago
DangerousWord
DangerousWord

Seems you need a lot of basic clarity that cannot be explained completely in a comment.

https://groww.in/p/what-is-esop

Broadly: check the ESOP policy document, share price of the ESOP(as per latest valuation report), number of shares being offered to you, cliff period, vesting schedule. Vested esops can't be sold in open market typically. Companies buyback those in a specified period from you once you leave the company.

Some companies grant it free of cost, others ask for face value, and some give it with discount when you exercise it.

There are a lot of nitty gritties beyond this, but having a clear ESOP policy will clear most of it. Feed your ESOP policy to some good LLM, you'll understand the rest.

EvenComptroller
EvenComptroller

How much ESOPs can you expect in a firm post MBA? Is there any range like % of fixed pay etc?

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