What mid-career startup employees should look for while looking at ESOPS

ESOPs (employee stock ownership plans) have become a common compensation system in startups to give employees a sense of ownership in the company's growth, but mid-career professionals evaluating a startup job should look at written ESOP policies, exercise pricing, and the vesting schedule. Every ESOP is taxed twice; at the time of exercise and when the shares are sold, hence employees should also look for clauses that ensure former employees are treated fairly during liquidation events. Some startups offer direct purchase plans, restricted stock and phantom equity plans, and an ESOP stock exchange may be a solution for employee stock options. April 15, 2023 at 11:14AM