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Show Equity Value to Employees
Show Equity Value to Employees
Michelle Chu avatar
Written by Michelle Chu
Updated over a week ago

Feature Description

You'll now be able to share an estimated equity value to your employees. This will help employees understand the value of their equity, as well as what they might be leaving on the table if they choose to leave the company before their equity has fully vested.

How does this feature work?

As the company admin, you can choose to share your company's share price with your employees. If you add multiple share prices (by clicking "+ Add New Share Price”), your employee will be able to see how their equity value has changed over time. To give your employees the best look into their equity value, please include as many data points as possible. For time periods without a share price, the value will show up as $0.

While the "Reason for Price" field is optional, you may choose to use it to let your employees know why the share price has changed. Reasons for change may include additional fundraising rounds or inflation.

How do I figure out the share price?

While the preferred share price is most commonly used as a share price estimate, there may be other terms that affect the value. For example, in each financing round, there’s an implied price per share for the new share class being sold, but that share price also relates to the other terms of the share class (conversion ratio, preference, seniority, etc.). If you're unsure, using the preferred share price may be recommended.

While the preferred share price is most commonly used as a share price estimate, there may be other terms that affect the value. For example, in each financing round, there’s an implied price per share for the new preferred share class being sold, but that share price is predicated on the particular rights of that share class (conversion ratio, preference, seniority, etc.) which may render it an imperfect proxy for the price per share of the the common stock that constitutes your employees’ equity. If you're unsure, using the preferred share price is often a good place to start.

What will my employees see?

This feature is currently only available for options grant holders, but will slowly be rolled out to other equity types. If your employee has only option grants and you have enabled equity value to be shown to them, they may see something like this:

Can I edit or disable this information?

Yes! You can edit or disable this feature at any time by going into "Stakeholder Portals".

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