Startup Funding Espresso How To Give Equity to Employees
How To Give Equity to Employees Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Equity is an important compensation tool for employees. Startups that don\u2019t provide equity must provide all compensation from the cash flow in the form of salaries and bonuses. This can be difficult on the finances of the business. Equity compensation doesn\u2019t require any cash outlay. Consider these methods of compensating employees with equity: New employees -- give equity as part of the compensation package and pay market rates. Promoted employees -- give equity as part of the higher compensation package. Performance compensation -- give equity as part of the compensation for outstanding performance. Ongoing compensation -- provide annual distribution of equity to employees to create a ladder of vested shares.\xa0 Avoid big gaps in the equity compensation so there\u2019s a steady flow of vested shares coming up each year. The market is competitive and equity compensation is a key factor for many employees. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _________________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .