Startup Company Offer Letters, Employment Agreements, and Equity Compensation Toolkit | Practical Law

Startup Company Offer Letters, Employment Agreements, and Equity Compensation Toolkit | Practical Law

This Toolkit includes resources addressing the key issues that startup companies should consider when entering into employment-related agreements with founders, employees, and executives at various stages of a startup's lifecycle. Resources in the Toolkit cover offer letters and employment agreements, equity compensation issues, including issuing restricted stock to founders and employees, granting stock options, such as incentive stock options (ISOs), non-qualified or non-statutory stock options (NSOs), or restricted stock units (RSUs) to employees and executives under an equity incentive plan, vesting and acceleration of equity incentives, filing Section 83(b) elections, and Section 409A compliance. The Toolkit also contains resources to help startups to protect their intellectual property (IP) and goodwill, including proprietary information and invention assignments (PIIAs).

Startup Company Offer Letters, Employment Agreements, and Equity Compensation Toolkit

by Practical Law Corporate & Securities, Practical Law Employee Benefits & Executive Compensation, and Practical Law Labor & Employment
MaintainedUSA (National/Federal)
This Toolkit includes resources addressing the key issues that startup companies should consider when entering into employment-related agreements with founders, employees, and executives at various stages of a startup's lifecycle. Resources in the Toolkit cover offer letters and employment agreements, equity compensation issues, including issuing restricted stock to founders and employees, granting stock options, such as incentive stock options (ISOs), non-qualified or non-statutory stock options (NSOs), or restricted stock units (RSUs) to employees and executives under an equity incentive plan, vesting and acceleration of equity incentives, filing Section 83(b) elections, and Section 409A compliance. The Toolkit also contains resources to help startups to protect their intellectual property (IP) and goodwill, including proprietary information and invention assignments (PIIAs).
The resources in this Toolkit provide guidance on three critical, and often overlooked or mishandled, issues that a startup company should carefully consider. These issues are:
  • How to document the company's employment relationships with:
    • founders;
    • employees; and
    • executives.
  • When and how to provide these individuals with equity incentives.
  • How best to protect the company's intellectual property and goodwill in connection with the activities of its employees.
For more information on startups generally, see Startup Company Toolkit.