Option schemes and Growth Shares allow you to set conditions such as goals and milestones that determine how much equity is distributed (and when). You can use one or more of the following as part of your equity agreements to motivate recipients...
Time-based conditions- Be part of the team over a certain period or at a certain date
- Stay with the business post-acquisition during an earn out period
- Work for X days / weeks per month (useful for non-executive directors and consultants)
- Generate £x in sales (can be tiered)
- Deliver client work valued at £x or above
- Profit goal reached
- Positive profit margin
- Revenue goal reached
- Revenue + gross margin target reached
- Revenue run rate above £x per month for an agreed period of time
- Generate £x of new business
- Generate £x in upsells
- Maintain or reduce churn rate
- Reduce costs
- Business worth X at a certain date
- Business sold for X
Output-based conditions
- Deliver an agreed project
- To create X blog posts a month
- To meet KPIs
- Number of referrals
Funding conditions
- Secure £x of funding
- Options issued after funding round
Participation conditions
- Complete X actions / activities
- Refer X users to the platform
- Achieve an average rating of X
- Achieve an engagement score of X
...or some combination of the above.
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