How do we determine whether a company should be included under a given metric (4 year grants, monthly vesting intervals, etc)?

## How do we determine whether a company should be included under a given metric (4 year grants, monthly vesting intervals, etc)?

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.

## How old is the Equity Practices data in our dataset?

All of Pave's Market Data is updated on a monthly basis. For Equity Practices calculations, only grants that have started to vest in the previous 12 months are included for analysis.

## How are Equity Burn rates calculated?

Annual equity burn is calculated by summing the number of shares granted over a 12 month period, divided by fully diluted shares. For private companies, we use the fully diluted share count at the end of the 12-month period. For public companies, we use the 12-month weighted average outstanding share count.

## How old is the Equity Burn data in our dataset?

Results include the most recent full year of equity data per company. Stale results (> 1 year outdated) are excluded.

## How are outliers handled in the Equity Burn dataset?

Extreme outliers are removed from results. To reduce noise, equity burn buckets beyond the 10th and 90th percentiles are removed from the histogram view.

## Do the Equity Burn benchmarks include grants allocated to non-employees?

The 'All Grant Recipients' relationship type filter includes all Employee, Executive, and Non-Employee data (board members, consultants, etc.).

## How is the Equity Burn Distribution data calculated?

Similar to the Equity Burn data, annual Equity Burn Distribution rates are calculated by summing the number of shares granted over a 12 month period, divided by fully diluted shares for Executives vs. Employees and new hire grants vs. ongoing grants. Notably, the equity burn distribution excludes individuals who are not employees, such as board members and consultants.

## What is the difference between Net and Gross equity burn rates?

Net equity burn is calculated using the total number of shares granted net of canceled, expired, and forfeited shares, while gross equity burn is calculated using the total number of shares granted net of canceled, expired and forfeited shares.






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Equity Practices FAQs

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