Employee incentive plans Part II: WHO GETS WHAT – WELCOME TO THE ALLOCATION KEYS

Deciding to implement some type of employment incentive scheme for your start-up is a sound a smart decision to enable you to compete for talent and once you find the right talent – to motivate it to stick with you.

The devil being in the (implementation) detail – the very important question you need to answer next – how you are going to decide who gets what.

I will explain the difference between these two methods. Let’s get started.

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Jana Nevrlka
Employee incentive plans Part I: Introduction

Employee Participation Plans have long been an integral part of the start-up culture in Silicon Valley. Start-ups need motivated and committed employees to be successful. At the same time, in the beginning, they usually cannot offer competitive salaries – and talent is expensive. It is, therefore, necessary to explore other ways to attract and incentivize the right employees without draining the much-needed liquidity. Both the Employee Stock Ownership Plans (ESOP) and the Phantom Stock Ownership Plans (PSOP) provide start-ups with a powerful tool to meet the needs of both the company and employees.

This 5-part blog series will help you understand the different options that are available for your startup, how they compare to each other, and how to choose which is the most suitable for you.

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Michele Vitali
The Slicing Pie model is available for Spanish founders

Customised #SlicingPie #Cofounder #Agreement template for Spanish founders is available. This is great news for Spanish early stage founders, as it gives them the opportunity to use the ‘fairest equity split tool’ and avoid many potential issues that are caused by fixed equity split in too early stages.

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Jana Nevrlka
Valuable cofounder lessons from co-founder Chrysanth Sulzberger

Innovator and Entrepreneur in Healthcare IT and CEO and Co-Founder at imito AG Chrysanth Sulzberger shares very valuable lessons on cofounding: from the value of having a sparring partner, growing through challenging discussions - and - different from my own recommendation - the success of their 50:50 split! One size really does not fit all. Thank you for sharing Chrysanth!

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Starting up a business? 3 main reasons to partner up!

What distinguishes the lucky shots from a proven success formula? I believe it is a repeated success. So when it comes to building a successful business – look for the right answers to successful serial entrepreneurs and experienced investors. The answer that echoes through many of those conversations is the importance of the cofounding team.

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Jana Nevrlka
Green light for slicing pie in canton Zurich

Great news for startups located in canton Zurich - slicing pie as a dynamic equity split option is also possible after incorporation - subject to defined conditions. The green light is an outcome of talks between political representatives of canton Zurich, tax authorities and supporters from the startup ecosystem. For its application is recommended to obtain a tax ruling.

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Jana Nevrlka
Cofounder trial period - date first

If you are considering onboarding a cofounder – the wise strategic choice is to try to work together before making the final commitment. In order to do it right, you need to set the framework and define the conditions. It is frequently the different assumptions of the parties that are basis of future disappointments and disagreements. The best advise is prevention.

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