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Tuesday, May 1, 2018

Becoming CEO of a Startup — Key Employment Contract, Equity Terms and Other Considerations

Last Tuesday, on April 24, 2018, CEOWorld magazine published an article I wrote on “Becoming CEO of a Startup — Key Employment Contract, Equity Terms and Other Considerations.” The magazine advised me that I can use “Featured in the CEOWORLD magazine” and their “Logo” on your website.
This article was designed for CEOs and other C-Suite, VPs or other senior executives who have achieved a level of success and who are tempted to leave an established company to take on the challenge of leading a startup, either a well-funded startup on the ground floor or an up and coming startup to the next level.

Becoming a startup CEO
My article discusses key employment contract and equity terms, including
  • Amount and terms of equity to seek,
  • Tax structure of equity if you are joining a ground floor startup,
  • Tax structure of equity if you are joining a scale-up startup,
  • Special severance terms for startup executive employment contracts.
The articles also suggest other important considerations to include in due diligence and employment contract terms including shared vision, representations as to current financial position and other representations the executive is relying upon to take the position.
It is my hope that this article will be helpful to CEOs and other senior executives who are considering joining a funded startup company, whether at the ground floor or in the scale-up stage. If you or any colleague of yours has a need in this area, please do reach out to me at radelson@engelschultz.com.