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  2. LEGAL/CORPORATE STUFF
  3. Restricted Stock

Vesting Calculator for Restricted Stock and Stock Options

May

15

2012

Options and restricted stock in a startup are subject to vesting. This is done to associate the rewards of equity ownership with the time and effort put into creating value for the company. Although vesting schedules can be infinitely flexible in theory, in practice they don’t vary that much. You’ll find that the majority of ...
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Employee Option Grants · Restricted Stock · Stock Options

option acceleration · vesting

Splitting the Founders Stock — Amount Depends on Contribution

Apr

20

2012

One of the first tough decisions that have to make is how to allocate or split the equity among co-founders. The easy answer of splitting it equally among all co-founders, since there is minimal value at that point, is usually the worst possible answer, and often results in a later startup failure due to an ...
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Founder Agreements · Restricted Stock · Stock Options

founders stock · vesting

What is an 83(b) election? Restricted Stock Implications: Startup Company Lawyer

Nov

10

2008

Failing to make a timely 83(b) election with the IRS is something that could lead to disastrous tax consequences for a startup company founder or employee. Founders typically purchase stock pursuant to restricted stock purchase agreements that allow the company to repurchase “unvested” stock upon termination of employment. Similarly, employees may “early” exercise options subject ...
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Restricted Stock

83(b) · options · tax

Restricted Stock Better Than Stock Options

Sep

27

2008

Many companies are concerned by the Financial Accounting Standards Board (FASB) recommendation that stock options be shown on the company’s expense sheet. Especially high-tech and start-up companies are concerned because they fear losing one of their great motivating tools. They needn’t worry. There is already a better compensation choice, restricted stock options.
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Restricted Stock

options

Restricted Stock FAQ

Sep

27

2008

Question: What is restricted stock?Answer: Stock is ownership of a company. When that stock has limitations on it, it is said to be restricted. Question: What kind of restrictions?Answer: One of the most common restrictions requires a certain length of time to pass or a certain goal to be achieved before the stock can be ...
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Restricted Stock

options

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