The future of employee equity should be transparent

Startup employees spend a significant portion of their life working on behalf of an employer.

They’re expected to have an ownership mentality, be relentlessly resourceful, and sustain the effort needed to will a product into existence. Historically, their access to liquidity has not been commensurate with these outsized contributions. Founder and employee equity are often not treated the same, and this PEER document removes this imbalance to finally make venture fair for all.

Increased Equity Transparency

We pledge to be transparent with company valuation
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Increased Equity Transparency

Employees deserve to know what their equity is worth at all times and should understand the differences between preferred and common stock. For potential hires, we pledge to give basic information in our offer letters including the number of fully diluted shares, number of shares they are getting, vesting terms, last preferred price, last 409a common stock valuation, and material information on liquidity preference and non-standard terms that could affect employee economics.

Regular Liquidity

We pledge to give all employees who receive stock-based compensation scheduled liquidity.
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Regular Liquidity

This means they will be given the opportunity to sell their vested equity in secondary sales on a predetermined schedule. Since future performance and market conditions are uncertain, we cannot guarantee a specific price or that there will be a liquid market. But we do pledge that we will make a good faith effort to find liquidity for employees at a fair price on a regular basis.

Financial Education

We pledge to offer employees education and/or resources on the meaning of their stock-based compensation.
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Financial Education

This includes the value it may be worth, and the potential tax implications. In order for employees to be a true co-owner, they have to understand what they own.

No Golden Handcuffs

We pledge to avoid equity terms that force employees to lose already vested equity if they leave the company after performing service for a reasonable time.
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No Golden Handcuffs

A common example is the forfeiture of vested options if not exercised within 90 days of departure. This is tough for many who cannot afford the cost to exercise. Employees should stay with a company because they want to, not because they’re afraid of losing the upside they’ve earned.

Join the movement

Hundreds of startups and founders have already committed to PEER.

Barack Obama

President, USA

Brian Armstrong

CEO, Coinbase

Bryant Chou

CTO, Webflow

Daniel Elk

CEO, Spotify

Elon Musk

CEO, Tesla and Space X

Jack Altman

CEO, Lattice

Jamie Dimon

CEO, Cha

Patrick Collison

CEO, Stripe

Richard Branson

CEO, Virgin

Stories from the trenches

Read horror stories from real employees that lost millions in unclear equity moves.

Employee that got equity at 2021 tiger global prices

Losing millions due to expiration is something no one should ever experience. Even Elon. Don't miss this.
Barack Obama
President, USA
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Employees that didn’t get liquidity when execs did….the company valuation went down 80%

Losing millions due to expiration is something no one should ever experience. Even Elon. Don't miss this.
Jack Altman
CEO, Lattice
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Employee can’t leave their company. They can’t afford to exercise options and haven’t been offered liquidity.

Losing millions due to expiration is something no one should ever experience. Even Elon. Don't miss this.
Bryant Chou
CTO, Webflow
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Employee that missed out on $1M in gains because they didn’t early exercise

Losing millions due to expiration is something no one should ever experience. Even Elon. Don't miss this.
Elon Musk
CEO, Tesla and Space X
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2M of equity lost because of options expiration

Losing millions due to expiration is something no one should ever experience. Even Elon. Don't miss this.
Brian Armstrong
CEO, Coinbase
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