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Typical Startup Equity Plan

 

"Is there a “typical” equity plan design for start-ups?"

This question was asked at a recent webinar, now available on-demand:

"Best Practices in Equity Financial Reporting"

Please add your thoughts about it below. Thanks!

Answers

Scott Schwartz
Title: Advisory Board Member
Company: Street Soccer USA
(Advisory Board Member, Street Soccer USA) |

The answer, "it depends" comes to mind with this question. But there is a common type. Most start-up companies roll out a standard stock-option plan, which includes incentive stock options (ISOs) for employees and non-qualified stock options (NSOs) for non-employees. The standard "Silicon Valley" start-up vesting schedule is a 4 year, 1 year cliff, meaning that the option fully vests after 4 years of continued employee or service to the company.

-Scott

Armanino LLP

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