If you’re a Startup founder and you’ve been wondering what’s the right number of ESOPs you should set aside for your employees, here’s our analysis that can help you to benchmark. We collated data of 50 Indian Unicorns to find out what’s the average percentage of shareholding that is usually set aside as ESOP pools:
So, it’s absolutely normal to dish out up to 7.4% of your equity to the employees. But is it better if its higher than this? Should the senior executives get more ESOPs than the juniors? What should be the vesting period for different kinds of employees?
We’ve identified 2 handbooks that are sure to help you with all these questions:
•Index Ventures: free-to-read handbook on “A Guide to Stock Options for European Entrepreneurs” &
•Holloway: free-to-read handbook on “The Holloway Guide To Equity Compensation”
This article is a part of the April'22 edition of our Startup Newsletter. Here's the complete publication:
