For all grants from the last 12 months for each company, the most common equity practice at that company is counted as the company’s practice
For example, if a company has 100 four year grants and 60 three year grants that began vesting in the last 12 months, they are only counted as practicing 4 year grants.
Equity types
New Hire Equity
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Refers to the value of the first grant received by an employee.
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This only includes employees who have started at a company in the previous 12 months
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This includes only the employees FIRST grant
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Example: A P3 Software Engineer started 6 months ago and has received
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$100k New hire grant (4 year vest, no cliff) — Included in the New Hire benchmark
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$20k Refresh grant at 6 month mark (4 year vest, no cliff)
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Refresh Equity
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Refers to the value of the non-new hire grants received by an employee in the past 12 months.
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This specifically excludes new hire grants
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This includes all grants that are not new hire, which means it can include some one-off grants that are not part of a standard refresh program
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The vast majority of these grants will be what we consider to be true refresh grants
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Example: A P3 Software Engineer started 6 months ago and has received
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$100k New hire grant (4 year vest, no cliff)
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$20k Refresh grant at 6 month mark (4 year vest, no cliff) — Included in Refresh benchmark
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Unvested Equity
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Refers to the current value of all the equity shares received by an employee that have not yet vested.
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This includes all grant types that have not yet vested, incl. new hire and refresh
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Example: A P3 Software Engineer started 6 months ago and has received
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$100k New hire grant (4 year vest)
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$12.5k has vested in the first 6 months
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$77.5k remains unvested — Included in the New Hire benchmark
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$20k Refresh grant at 6 month mark (4 year vest)
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$0k has vested
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Supported Equity Practices
Vesting Duration - The length of time over which an equity grant vests.
Vesting Interval - The frequency at which equity vests after the grant’s cliff (if applicable) has been reached.
Vesting Structure - The rate at which a grant’s equity vests over time.
Cliff Duration - A period of time during which no portion of the grant vests. At the end of this period, a lump sum or percentage of the grant becomes fully vested, allowing the recipient to exercise ownership rights.