Cake Equity

Employee equity agreement template

Issue employee equity agreement and offer letters in minutes
employee equity agreement template
equity agreement template

What is an employee equity agreement?

When a company gives an employee an equity grant, one of the first documents he or she will receive is an equity grant agreement. For newly hired employees, equity grant agreement is usually attached to a job offer letter. The equity grant agreement is a legal document that breaks down the details of the equity such as the type of shares, how many shares, the amount of money each share is worth, vesting period, fair market value, and other legal information. Typically, employees must first fulfill some requirements to earn these benefits, such as adhering to a vesting period. A vesting period means that before you acquire these ownership rights, you must work for the company for a predetermined period. Take note that being granted equity is not a guarantee that your anticipated fortune will materialize but when it does, the benefits can be very rewarding. It's important to know the type of equity you were granted and the requirements to qualify for them. All of these information are usually laid out in the equity agreement.

About the equity agreement template

What is an employee equity agreement

When a company gives an employee an equity grant, one of the first documents he or she will receive is an equity grant agreement. For newly hired employees, equity grant agreement is usually attached to a job offer letter.

The equity grant agreement is a legal document that breaks down the details of the equity such as the type of shares, how many shares, the amount of money each share is worth, vesting period, fair market value, and other legal information.

Typically, employees must first fulfill some requirements to earn these benefits, such as adhering to a vesting period.

A vesting period means that before you acquire these ownership rights, you must work for the company for a predetermined period. Take note that being granted equity is not a guarantee that your anticipated fortune will materialize but when it does, the benefits can be very rewarding.

It's important to know the type of equity you were granted and the requirements to qualify for them. All of these information are usually laid out in the equity agreement.