Remuneration in shares

[I 8 a 4RE]

Looking for experience in remuneration in shares when potentially going to work for a small company.

Specifically trying to figure out how receiving shares work for small start-ups / scale-ups vs shares paid in a bonus scheme for listed companies.

When working for listed corporates it is clear; part of your annual bonus will typically be paid in ‘shares’ of the company which will vest over a fixed period.
(I put ‘shares’ in brackets, because typically no shares are purchased, simply fictional amount based on share price on baseline date and adjusted per vesting anniversary; all in cash.)

Now the question is; how does this work with start-ups / scale-ups?
Do they issue actual shares (or is it all cash like in aforementioned example)?
When they do, how do you liquidate the shares in case company is not listed?
What happens if you leave the company on bad terms (they don’t like you leaving) and nobody is willing to buy your shares from you?

[I 8 a 4RE]

HootersGsy said:

Articles and any decent start up should have a shareholders agreement.

Be aware shares in a private company are not liquid so trying to realise them may be completely tied in to when the founders wish to exit or subject to any number of restrictions. As a start up they may also be worthless if the business fails (or worth a lot if it does really well) so make sure you have your eyes wide open.

OK thanks both.

This is exactly what has me worried. Listed companies I can track the share price and now at anniversary what the amount will be.
Equity in start-up / scale-up ... who determines value?

Would be better in many ways if it simply was cash-equivalent, but then how do you benefit from 'event' (PE buy-out, acquisition or IPO).