| 1 | |
| 00:00:00,000 --> 00:00:07,920 | |
| Yes, the most common vesting period is 4 years, but you aren't supposed to accept | |
| 2 | |
| 00:00:07,920 --> 00:00:09,920 | |
| anything at face value. | |
| 3 | |
| 00:00:09,920 --> 00:00:12,000 | |
| So think about it. | |
| 4 | |
| 00:00:12,000 --> 00:00:16,920 | |
| Based on what you have thought about as your company's long-term objective, what blocks | |
| 5 | |
| 00:00:16,920 --> 00:00:22,600 | |
| of period sound right and just fit much better? | |
| 6 | |
| 00:00:22,600 --> 00:00:26,680 | |
| Try to arrive at a very natural sense of that period. | |
| 7 | |
| 00:00:26,680 --> 00:00:33,440 | |
| You see, you can adopt 4 years because that is the norm, but it really won't be yours. | |
| 8 | |
| 00:00:33,440 --> 00:00:37,840 | |
| If after having thought about your long-term goals, you have come to the conclusion that | |
| 9 | |
| 00:00:37,840 --> 00:00:43,160 | |
| yes, 4 years works for us, then it is yours. | |
| 10 | |
| 00:00:43,160 --> 00:00:47,040 | |
| You could feel that 5 years sounds much better to you. | |
| 11 | |
| 00:00:47,040 --> 00:00:49,640 | |
| Could there be some resistance from the employees? | |
| 12 | |
| 00:00:49,640 --> 00:00:50,640 | |
| Possibly. | |
| 13 | |
| 00:00:50,640 --> 00:00:56,000 | |
| Why are you doing 5 when most others do 4, they might ask? | |
| 14 | |
| 00:00:56,000 --> 00:00:59,880 | |
| Your conviction about your vision helps you answer that. | |
| 15 | |
| 00:00:59,880 --> 00:01:06,320 | |
| And most people don't mind when they see that there is some substance behind that thought. | |
| 16 | |
| 00:01:06,320 --> 00:01:12,120 | |
| Also, do not think for a moment that the longer you keep the vesting period, the longer | |
| 17 | |
| 00:01:12,120 --> 00:01:14,040 | |
| you people will stay. | |
| 18 | |
| 00:01:14,040 --> 00:01:17,040 | |
| So let me vest the options over 10 years. | |
| 19 | |
| 00:01:17,040 --> 00:01:22,080 | |
| In that case, you may not find any good people to begin with. | |
| 20 | |
| 00:01:22,080 --> 00:01:27,760 | |
| People tend to stay longer when they are excited about the goal they are pursuing. | |
| 21 | |
| 00:01:27,760 --> 00:01:33,360 | |
| If people are staying only for the options to vest, you have a not-so-interested team | |
| 22 | |
| 00:01:33,360 --> 00:01:36,760 | |
| working for you, which is not good. | |
| 23 | |
| 00:01:36,760 --> 00:01:41,920 | |
| Keep it at a reasonable level that can be justified by your long-term vision. | |
| 24 | |
| 00:01:41,920 --> 00:01:47,200 | |
| Even the long-term vision can usually be divided up into blocks of time. | |
| 25 | |
| 00:01:47,200 --> 00:01:50,840 | |
| But whatever that number is, make it yours. | |
| 26 | |
| 00:01:50,840 --> 00:01:52,400 | |
| Own your vesting period. | |