This explains the legal and strategic differences between ESOPs and Sweat Equity. The key takeaway is that ESOPs suit long-term retention, while Sweat Equity fits exceptional, one-time ...

A common topic of negotiation in M&A transactions is how to treat performance-vesting equity awards for which the relevant performance period is not yet completed as of the closing of the deal. The ...

Founder share vesting means that a founder may keep a certain percentage or all of their stocks or shares only after leaving the company post a specified period or event. A one-year cliff is generally ...

Equity payments at startup companies offer the potential for a big payout, but they're also much riskier and more tax-complex than salaries are.