Startup Equity 201: Stock Options
Wednesday, May 22, 2013 from 6:30 PM to 8:00 PM (EDT)
New York, NY
San Francisco, California
London, United Kingdom
This class is for entrepreneurs, who want to retain and incentivize the most important engine of company growth -- their people. And for employees of high-growth, early-stage companies, who receive stock options as part of their compensation package.
Students will learn the nuts and bolts of Employee Incentive Plan that best serves the interests of founders, investors, and employees. We'll start by reviewing the basics – some of the fundamentals we learned in 101 such as dilution, vesting, and 83B election for restricted stock grants – then delve a bit deeper into the alphabet soup of stock option plans: ISOs (Incentive Stock Options), NSOs (Non-statutory Stock Options), FMV (Fair Market Value), et cetera. We'll discuss:
- Distinction between employee stock option plans and stock grants
- Employee stock option plan best and worst practices
- Distinction between Incentive Stock Options (ISOs) and Non-Statutory Stock Options (NSOs)
- Tax strategies for ISOs and NSOs
- Fair Market Valuation (FMV) of company stock
- Negotiation best and worst practices for founders and employees
- Secondary markets Exit strategies for option holders
The legal stuff will be explained by Zeke Vermillion, partner at Adler Vermillion & Skocilich.
This class will be ideal for you:
- If you are a founder who's planning to incentivize your hires with company stock options
- If you are an employee who received stock options and is wondering what this entails and what taxes you might have to pay
- If you don't know what the difference between ISO's and NSO's is
- If you want to know how to best go about negotiating your employee equity compensation
- If you have particular questions to ask a startup lawyer about your employment contract, taxes, or something else
- If Startup Equity 101 left you wishing for more...!
Here is Zeke's bio:
Zeke acts as a general corporate legal adviser to entrepreneurial companies and individuals. Recent engagements include capital-raising transactions, employee equity incentive grants, copyright and trademark licensing, business development partnerships, and small business acquisitions. Zeke was previously at White & Case, where he worked on a wide variety of M&A, securities, project and asset finance deals, and the largest IPO in history. He uses his broad experience and industry connections to solve clients' legal problems efficiently.
This class is a continuation of Startup Equity 101 Primer, which I taught several times since June 2012. Here are what past attendees and students have had to say about the class:
Thanks Jamie for teaching the Startup Equity Primer. Certainly a difficult and complex topic that takes more than a day to teach but I think you gave a great overview of the topic to get the wheel rolling on planning equity structure. - EN
Jamie's talk was excellent--and just what I was seeking. She was very professional, well versed on the topic and was well prepared. She covered a great deal of material clearly and efficiently. The class was made up of smart, knowledgable founders who asked great questions. She was succinct in her answers and made sure she was clear enough so that everyone understood. -PS
She offered great information and made sure that we understood the material and had our questions answered. She was very well-prepared with slides, handout, and pre-populated spreadsheet that explained the process. I'd recommend this class to founders and to those who are interested in going to work for a startup. -MN
The image is from Long Term Incentive and the Black Box of Employee Stock Options (a great read!)
When & Where
Ji Eun (Jamie) Lee
I specialize in helping entrepreneurial women confront negotiation anxiety, articulate their value, and boldly ask for what they desire.
As teacher and speaker, I also demystify the confusing and unsexy legal and tax fine prints of equity compensation for startup founders, employees and contractors.
Three years ago, I pivoted my career from analyzing news trends for hedge fund managers to building business models for technology startups. From my career reinventions, I learned that delivering and articulating one's value is key for successful negotiation in any industry.