Tuesday, May 31, 2011

Startups and Cliff Vesting

Sharing options is the main way how startups can compete with big companies for employees. And people who run startups or is going to join ones is interested in common approaches. Jay Bhatti in his article How Startups Should Deal With Cliff Vesting For Employees explains one of them very understandable.

One of the most exciting aspects of joining a startup is getting stock options. It gives you ownership in the company and aligns incentives between management and employees. However, one part of the standard options package causes a lot of debate amongst employees and management. It’s the Cliff.