Founder's Journey Unplugged

Setting up the most Employee Friendly Stock Option Program (ESOP)

May 17, 2023 Bastian & Markus Season 1 Episode 7
Setting up the most Employee Friendly Stock Option Program (ESOP)
Founder's Journey Unplugged
More Info
Founder's Journey Unplugged
Setting up the most Employee Friendly Stock Option Program (ESOP)
May 17, 2023 Season 1 Episode 7
Bastian & Markus

For (early-stage) startups, it can be challenging to offer very attractive compensation when only looking at the salary. However, Employee Stock Option Programs (ESOP) can be a great opportunity to make your offers way more attractive and enable you to incentivize your employees like real entrepreneurs. Thus, in this episode we will discuss questions like: 

  • When should I set up an ESOP?
  • How many percent of the companies' shares should we allocate to the ESOP?
  • What are important legal terms to make it really attractive for your employees?
  •  What are essential legal terms not to discourage potential investors in future funding rounds?
  • How do you present the ESOP to potential new hires in an offer conversation?
Show Notes

For (early-stage) startups, it can be challenging to offer very attractive compensation when only looking at the salary. However, Employee Stock Option Programs (ESOP) can be a great opportunity to make your offers way more attractive and enable you to incentivize your employees like real entrepreneurs. Thus, in this episode we will discuss questions like: 

  • When should I set up an ESOP?
  • How many percent of the companies' shares should we allocate to the ESOP?
  • What are important legal terms to make it really attractive for your employees?
  •  What are essential legal terms not to discourage potential investors in future funding rounds?
  • How do you present the ESOP to potential new hires in an offer conversation?