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Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferredstock dashboard. Team: Hires, fires, departures, responsibility changes, major promotions, and your org chart.
More often than not, equity compensation is an attraction and retention tool, rather than a replacement to salary. Typically, employers that offer employees equity compensation will do so in the form of common stock, preferredstock, or stock options. I’ll go into the difference between these in just a moment.
Due to aggregate liquidation preferences that may exceed the acquisition price in an M&A deal, common stock may be rendered worthless. If you can’t figure this out yourself, you should probably build a liquidation preference spreadsheet to model how liquidation preferences work depending on M&A transaction value.
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