tech-company, equity, employees, contracts, private-companyI have been working in a small startup company in Portugal as PHP developer (key employee) and currently I am in the process to negotiate a deal and become minor co-owner of the company. The deal has a vesting period, where I commit further years in the company in exchange of some percentage.
I am now collecting some ideas for negotiating a fair vesting contract for both parties at the same time I need to protect my interests in the deal. Below I describe some few points I would like to have written in the contract, I would like to know your opinion on:
I am completely aware I should consult a lawyer because of Portugal law, but I would appreciate your general feedback.
Here points to be included:
As an employee I lose only non-vested shares if I leave by my own or I am being fired with a valid cause. If the company dismiss me for any other reasons, I receive all shares intact.
I would completely agree on point 2 and 4. I think your third point is not to the benefit of the company. Assume the startup isn’t making as much money as expected and salaries have to be cut for a while. If 100% vesting occurs immediately, the company/shareholders risk you taking all the money out right away at an already difficult time where money is tight.
In general, I advocate you negotiating work in exchange for shares of stock instead of percentages. This answer explains the concept in greater detail.
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