Hiring and Growth

Crash Course: Offering Equity to Your Employees

Gusto Editors  

Are you building a rocket ship?

Staffing up will fuel your growth, and offering equity creates strong incentives to get the right people to join you for the ride.

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In this guide, you’ll learn:

  • Key terms and concepts, from vesting to 409A valuations
  • A step-by-step process for building your equity strategy
  • Advice from successful entrepreneurs and VCs
  • How to talk to your team about equity
  • An overview of tax implications upon exercising and selling stock

You should read this guide if you are:

  • You’re a startup founder who wants to learn the basics behind offering employee equity
  • You’re an employer who wants to offer equity to new hires
  • You want to be wildly entertained (and learn some stuff along the way)

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Updated: January 5, 2021


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