Actually normally, there is a certain percentage that is reserved for the employ stock pool (between 10-20 from what Ive seen before). Also these are common stock so that employees are incentivised purely on building the value of the company.
While 0.02 (to 0.2) is quite common, it boils down the how much value you see the employee adding to the company and also vice versa. Ie what the valuation for the company is and what the risk/reward profile of that 0.02 (or 0.2 for that matter)% "buys" from the employee's perspective. Now that is just from what what ive observed and heard, but never have had the fortune of implementing it real life. So Il let the real entrepreneurs and founders who have been there and done that talk :D cheers Sri On Tue, Nov 11, 2008 at 9:53 AM, Hendro Wijaya <[EMAIL PROTECTED]>wrote: > Hi All, > > My name is Hendro and this is my first post here. :) > I'm curious on how the agreement works for the company that want to give > their employees some stocks options (like Google / Microsoft for example). > Are they talking in terms of % like "I give you 0.02%?". That doesn't sounds > so appealing. > > I have a plan to hire some early developers. They will be given some salary > like usual but, to ensure they have common interest to drive the company > forward, I would love to do some profit sharing scheme in a scalable way. > > Any thoughts? > Thanks! > > Cheers, > Hendro > > > > -- Blog: http://panyam.wordpress.com URL: http://www.geocities.com/spany_1 --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Silicon Beach Australia" group. To post to this group, send email to silicon-beach-australia@googlegroups.com To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en -~----------~----~----~----~------~----~------~--~---
