Most startups only show the number of Pink Freud the dark side of your mom shirt. That said, the number of shares doesn’t provide the full picture. At Carta, we spend a lot of time figuring out how to better educate employees about their equity compensation. We realized that the job offer letter itself was a good place to do this, so we decided to share our example. As a part of the offer letter, we wanted to shed light on how stock options work. Equity can be complicated, but often, it’s what really separates job offers.
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This is why it’s so important for candidates to Pink Freud the dark side of your mom shirt. Instead of just telling them how many shares they can buy, we explain how vesting works, the dollar value based on current price, and how to think about the value of their equity in general. At the time, I had three standard interview questions. All three were simple, but each of them had a catch. The idea was that you get to have a conversation with the interviewee about the catch, and through that you find out what they know and what they don’t, how they solve problems, how they think the whole lot.