Feld Thoughts

JANUARY 17, 2013

I’ve never really understood why the majority of stock option refresh grants are stacked grants mid-way through the granting process. Assume you hire someone and grant them 10,000 options with monthly vesting of four years with a one year cliff. options / month, or 2,500 / year.) Let me give an example.

Stock Options 134

Stock Options Stock Vesting Retention 134

Up and Running

DECEMBER 1, 2015

If however you are giving a “normal employee” an incentive stock option plan (more on that later), that’s entirely different. Make sure you understand all of your options before making any decisions. More often than not, equity compensation is an attraction and retention tool, rather than a replacement to salary.

Equity 60

Equity Employee Stock Options Vesting 60

Up and Running

MARCH 7, 2018

Aside from the time-consuming tasks of screening potential employees, interviewing, and re-hiring , losing and replacing employees is expensive. It is important to develop a retention plan right off the bat to keep employee turnover in your small business from becoming a very costly and aggravating expense. Hire the right people.

Employee 91

Employee Startup Salary Hiring 91

Both Sides of the Table

MAY 2, 2015

For a well-funded seed company I have controversially recommended hiring a great office manager that doubles as an administrative assistant. This happens because many CEOs are passionate, market-driven people who are constantly trying to launch new products, win contracts, get press, hire staff and woo VCs. HR & Legal.

Operations 150

Operations Metrics Early Stage Non-Compete 150

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. If you don’t have a strong balance sheet and can’t hire more people that’s fine — but understand this may lead to slower growth. Two-f **g-billion!

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Up and Running

OCTOBER 13, 2022

Employee retention, for both startups and established businesses, is more important than ever. Before hiring an advisor, be sure to look into their years of service, legal fees, and track record in successfully establishing growth-oriented ESOPs. Establish how your ESOP works. Get a 409a valuation.

Vesting 88

Vesting Stock Valuation Stock Options 88

Gust

NOVEMBER 4, 2011

This discussion expands on my Quora answer to a specific question: “ Why were the stock options of MySpace employees worthless even though the company was sold to News Corporation for hundreds of millions? ” The complete story includes a startup-within-a-startup, investments and exits by two VC firms, and some genuine corporate drama.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98