Do startups award equity every year?

Question

I have what's probably a simple question if someone can help me!

Say that a private startup gives an employee 0.1% equity in the company. Is the company expected to add to the employees' equity every year like big tech company do with stocks?

john · Accepted Answer

Something to keep in mind with startups is the exercise window. At a lot of companies, if you leave, you have to exercise within 3 months of departure or forfeit your options.

Would ask the company what their exercise window looks like

AlwaysRock · Answer

Ask what the vesting schedule is. Ask if they have "refreshers". But at the end of the day you can ask these types of questions to hr/recruiters/someone at the company and they will have an answer for you. Most people don't know this stuff so don't feel bad if you dont.

teriyaki · Answer

Typically, the 0.1% will vest every month (over 4 years) after a one-year cliff, and refreshers are offered either around a performance review (so a raise + more stock options), or when the employee gets a competing offer and they offer more equity to try and retain them

Do startups award equity every year?

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