Equity data benchmarking
Market Data includes benchmarks for equity compensation, along with settings that control how equity values are calculated and displayed. Market Data Pro customers get access to additional equity compensation types and settings.
Equity compensation types
Market Data Pro provides benchmarks for three equity compensation types with configurable settings:
- New hire equity: The value of equity grants received by an employee at time of hire. If multiple grants are given on the same start date, they are combined.
- Ongoing equity: The value of non-new-hire grants received by an employee in the past 12 months. This includes ongoing and refresh grants.
- Unvested equity: The current value of all equity holdings received by an employee that have not yet vested.
Total equity is also available when viewing VP-level and C-level benchmarks. Total equity is limited to Gross and Equity ownership (%) views.
Equity settings
With Market Data Pro, equity benchmarks have three settings that control how values are calculated and displayed. You can access these settings by selecting Cash and equity settings in the control bar, or by adjusting the inline selectors above each equity table.
Equity view
Controls how equity value is expressed:
- Gross: The number of shares granted multiplied by the share price
- Net: The number of shares granted multiplied by the difference between the share price and the exercise price
- 409A: The number of shares granted multiplied by the most recent 409A valuation price. Not available when viewing benchmarks for public companies.
- Equity ownership (%): The number of shares granted divided by fully diluted shares. Not available when viewing benchmarks for public companies.
Timeframe
Controls whether equity values represent the full grant or an annualized amount:
- Total: The total value of the equity over the full vesting period
- Annualized: The value per year, calculated by dividing the total equity value by the vesting duration
Grant value
Controls whether the equity value reflects conditions at the time of grant or current conditions:
- Original grant: Calculated using the share price, 409A price, or fully diluted shares at the time the equity was granted
- Current grant: Calculated using the most recent share price, 409A price, or fully diluted shares, and includes stock appreciation since the grant date
Default settings
Each equity type has different default settings when you first view it:
| Equity type | View | Timeframe | Grant value |
|---|---|---|---|
| New hire equity | Gross | Total | Original grant |
| Ongoing equity | Gross | Total | Original grant |
| Unvested equity | Gross | Total | Current grant |
| Total equity | Gross | Total | Current grant |
Access
All Market Data customers can view equity benchmarks with Gross and Equity ownership (%) views. Market Data Pro unlocks:
- Advanced equity compensation types (new hire equity, ongoing equity, and unvested equity) with configurable settings
- Net and 409A equity views
- Full Equity Practices benchmarks (see Explore Equity Practices)
Common definitions
409A valuation: An independent appraisal of the fair market value (FMV) of a company's common stock.
Annualized grant value: The value of a grant per year. For example, if a $100,000 grant vests over four years, the annualized grant value is $25,000.
Black-Scholes value: A calculation to determine option value that accounts for stock volatility, expected time to exit, company value, exercise price, and risk-free rate.
Cliff achieved date: The date at which a grant's cliff is reached. For example, if a grant's vesting start date is January 1, 2025 with a one-year cliff, the cliff achieved date is January 1, 2026.
Common stock: Stock issued at a company's fair market value.
Equity burn: The total shares issued under a company's equity compensation plan in a fiscal year, divided by the company's total common shares outstanding.
Exercise price: The price at which an option may be purchased (also called strike price, 409A price, or FMV price).
Fully common shares outstanding: Common stock for a company that has been authorized or issued.
Fully diluted shares: Outstanding shares plus convertible securities (such as bonds) that can be converted to company common stock.
Intended grant value: The value of a grant based on the share price at the time it was granted. This value does not change when the company receives a new valuation.
Actual grant value: The value of a grant based on the most recent share price. This value changes when the company receives a new valuation, reflecting stock appreciation or depreciation.
New hire grant equity: The first equity assigned to an employee, based on the vesting start date. If multiple grants are given on the same start date, they are combined.
Preferred stock: Stock generally issued to early-stage investors that has priority in a liquidity or bankruptcy event.
Preferred price: The price investors paid for stock in the latest funding round.
Refresh grant equity: All equity granted to an employee that is not part of their new hire grant.
Vesting cliff: A period of time after the grant date during which no equity vests. At the end of this period, a portion of the grant becomes fully vested.
Vesting duration: The total length of time over which a grant vests.
Vesting interval: The frequency at which equity vests after the cliff has been reached.
Vesting start date: The date a grant begins to vest, which is different from the cliff achieved date.
Vesting structure: The rate at which a grant's equity vests over time. A linear structure vests evenly, an accelerated structure vests more equity earlier, and a back-weighted structure vests more equity later.