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Business Lesson: Employee Equity

Business Lesson : Pay equity to employees more than investor.

First of all, I will start that I got to learn many things yesterday about equity.

Investors are important. ( Maybe ) but they are not active in the business.

Hence it makes more sense to pay equity to employees as a startup.

Of-course both investors and employees and all the stakeholders ( shareholders ) must be vested.

Vesting is an important contract.

If it is there, then it means that the business partners and stakeholders trust each other.

It’s lack means that the individuals are not able to trust each other freely.

Equity is for those who are actively working in an organization. Note the word “Active”.. Active investors, active advisors, active founders, active employees.

If the company stocks get into the hands of those who are idle. Then it acts as a hindrance to decision making.

Thus vesting ensures that equity is on the hands of those who are active.

See you soon. Peace :) \m/