What is New Hire Equity?
New Hire Equity is a new equity benchmark option within Pave’s Benchmarking tool. This new feature allows Pave customers to not only look at the gross value of all equity grants based on today’s company valuation for an employee, but also look at the equity value when a person first joined the company. We are displaying more granular equity benchmarking data that factors in when and at what value the original grant was for.
In a nutshell, New Hire Equity gives visibility into trends and comparative data for new hire equity grants, enabling customers to confidently create competitive and compelling offers!
What’s the difference between Total Equity and New Hire Equity?
Total Equity (formerly referred to as just Equity) in the Pave product refers to the current value of all the equity grants received by an employee. This includes the impact of stock appreciation as well as any additional grants that may have been received. This is calculated as the total number of shares for employee * current preferred share price. This value is based on a standard 4 year vesting schedule.
New Hire Equity refers to the value of the first grant received by an employee at the time that it was received. There is no additional grants or stock appreciation impact. This is calculated as the number of shares in the employee’s first grant (options or common stock) * the preferred share price of the company at the time of issuance. This value is based on a standard 4 year vesting schedule.
Is the New Hire Equity data associated with the current company filters or the company filters at the time it was granted?
The new hire equity slice is associated with the company's attributes at the time that equity was granted. Example:
- New Hire Equity: when using the filters here (e.g. 1B+), you’re only looking at all grants that were made while a company was at this valuation (e.g. grants that were made by companies at the 1B+ mark)
- Total equity: when using filters here, you’re only looking at all grants for companies that are currently at this valuation
Why is New Hire Equity higher than Total Equity?
This may happen because the data is coming from different samples of employees. It’s also important to note that there is no guarantee that the valuation today is higher than that at the time of hire.
Why am I getting results for Total Equity and not New Hire Equity?
Being a new product there may be some searches where New Hire Equity data is not yet able to be provided. However, we’re constantly working to improve the product in an effort to make New Hire Equity data available across most searches!
For more learning about New Hire Equity check out our blog post here!