Tell me more ×
Answers OnStartups is a question and answer site for entrepreneurs looking to start or run a new business. It's 100% free, no registration required.
up vote 1 down vote favorite

I was reading the top answer here:

what do you need to pay for the board of advisors in a startup?

The author was saying:

In general, advisors get something between 0.1% - 1% of the company, vested monthly over 2 years.

I understand the concept of giving 1% of my company to an adviser. What I don't understand is "vested monthly over 2 years". What does that means? I have no idea...

share|improve this question

1 Answer

up vote 5 down vote accepted

Monthly vesting over 2 years means that every month the person receives 1/24th of the allocated stock shares.

If your stock grant to an adviser is 1% vested over 2 years and they leave after 3 months, then only 0.125% of the company belongs to them. If they leave after 1 year and 1 month, they keep 0.54167% of the total shares.

share|improve this answer

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.