start-up employee shares question
Discussion
Firstly, you shouldn't be afraid to raise the topic. You are, after all, only asking them to do what they said they would.
You should ask for a meeting with the owners and raise it in a formal, yet friendly way. You don't want it to end up as yet another chit chat. State that you would like to discuss what they have in mind, and that you'd like the agreement to be made formal, which will be something an accountant will have to be involved in.
By not getting this agreed when you joined, you have, perhaps, weakened your negotiating position a little, so it may come down to how honest the founders are, and how important you feel this is. Without knowing your role, or the nature of the business it's hard to say what percentage would be fair, but remember that you can always allow yourself to be negotiated down. I would have thought that as a junior partner, 5% would be the most you could ever hope for, particularly as it doesn't sound like you are investing any of your own money. Depending on the size of the company, and the sums involved, you may wish to seek independent advice from an accountant as to how their offer is made up, regarding voting rights etc.
Either way, get it resolved now, the longer it goes on (and the more successful (hopefully) the business becomes, the more difficult it will be to get this agreed.
You should ask for a meeting with the owners and raise it in a formal, yet friendly way. You don't want it to end up as yet another chit chat. State that you would like to discuss what they have in mind, and that you'd like the agreement to be made formal, which will be something an accountant will have to be involved in.
By not getting this agreed when you joined, you have, perhaps, weakened your negotiating position a little, so it may come down to how honest the founders are, and how important you feel this is. Without knowing your role, or the nature of the business it's hard to say what percentage would be fair, but remember that you can always allow yourself to be negotiated down. I would have thought that as a junior partner, 5% would be the most you could ever hope for, particularly as it doesn't sound like you are investing any of your own money. Depending on the size of the company, and the sums involved, you may wish to seek independent advice from an accountant as to how their offer is made up, regarding voting rights etc.
Either way, get it resolved now, the longer it goes on (and the more successful (hopefully) the business becomes, the more difficult it will be to get this agreed.
it doesn't have to be just about the shares, ask them about any paperwork, they have been happy to pass your probation, just say you want to make sure everything is in place so the company is water-tight in case someone rocks the boat in the future (new employees etc who don't get the offer)
make out it's in the best interests of the company and i'm sure they will sort it out.
as for the legal side, i can't help with that sorry, i can just balance my current account.
make out it's in the best interests of the company and i'm sure they will sort it out.
as for the legal side, i can't help with that sorry, i can just balance my current account.
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