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.