Ive hired hundreds of tech employees, and recently started Comparably to make workplace compensation and culture more transparent. Most private tech companies offer equity as part of team members compensation package, but employees rarely understand the value and most important aspects of this arrangement.
Stock compensation is complex, and there are many hidden rules. This guide will help you understand the value of your equity compensation and the rules that guide it.
Heres what you need to know.
You should ask what percent of the outstanding shares your equity grant represents.
The most basic way to understand the value of equity grants is to know what percentage of the total outstanding shares your grant represents. Bas…
Read the full article at: http://fortune.com/2016/09/27/the-complete-guide-to-understanding-equity-compensation-at-tech-companies/