Would you offer this benefit to your employees? a conditional secondary
You allow your employees to forward sell a small portion of their stock compensation to an existing investor or whoever. Employee can only sell a small amount; at least 80% of their stock comp is vesting normally.
The cash proceeds don’t immediately go to the employee. If they’re loyal to the very end (and if the startup runs aground), they get this cash.
If they resign at any point, cash goes to the employer.
Basically you give employees an option to choose what incentivizes them. Loyalty and retention is rewarded with a small cash cushion in the worst case scenario.
The cash proceeds don’t immediately go to the employee. If they’re loyal to the very end (and if the startup runs aground), they get this cash.
If they resign at any point, cash goes to the employer.
Basically you give employees an option to choose what incentivizes them. Loyalty and retention is rewarded with a small cash cushion in the worst case scenario.