Henry Ward, the CEO of online equity services startup eShares, has open-sourced an example of the company’s offer letter in an effort to help job candidates at startups. Ward’s hope is to encourage transparency in more companies and better educate employees on startup equity.
In a post on Medium over the weekend, Ward shared the 14-page offer letter which included details of what a candidate could expect in regard to salary, equity and benefits. Graphs are included to illustrate such things as how salary is set, capital structure and breakpoints, formula for calculating option payout, and an option vesting schedule.
Ward’s letter also offers six key advice points on how employees are encouraged to think about their equity. “Live your life as though your equity is worthless,” the final point states. “If it is worth something in the future, that is icing on the cake.”
— Peter Berg (@peter) March 13, 2016
— Matt Strand (@mstrand) March 12, 2016
— Brian Kelly (@resetbrian) March 13, 2016
@henrysward Thanks so much for sharing your Offer Letter post. It’s brilliant and exactly the inspiration I needed. ?
— Kirsti Grant (@KirstiGrant) March 12, 2016
— Jake Kaldenbaugh (@Jakewk) March 13, 2016
Usually offer letters suck and lack the most basic information. eShares’ game is strong ?? https://t.co/1BesH1Muov
— Jori Lallo (@jorilallo) March 12, 2016
— Danya Shults (@danyacg) March 13, 2016
— Rob Mishev (@robmishev) March 13, 2016