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/english > 47. Equity & Compensation Deep Dive
// УРОК 47

Equity & Compensation Deep Dive

B2

Equity & Compensation Deep Dive

Equity Types

TypeMeaning
RSU (Restricted Stock Unit)Shares granted that vest on a schedule — used at public companies
ISO (Incentive Stock Option)Option to buy shares at strike price — tax-advantaged, US only
NSO (Non-Qualified Stock Option)Option to buy shares — taxed as income on exercise
409A valuationIndependent valuation of private company shares — sets strike price
strike priceThe price at which you can buy shares (should be below market value)

Key Concepts

  • vesting schedule: 4-year vest with 1-year cliff is industry standard
  • cliff: you must stay X months before any equity vests
  • dilution: your ownership % shrinks as the company raises new funding
  • liquidation preference: investors get paid first in an acquisition
  • exercise window: time after leaving to exercise options (90 days is standard, sometimes 5–10 years)
// TERMINAL CHALLENGE

Проверь себя

Q1. What is the main difference between RSUs and stock options?
Q2. What is a '409A valuation'?
Q3. What is 'dilution' in the context of startup equity?
Q4. What is the standard vesting schedule for tech company equity?
Q5. What is the 'exercise window' for stock options?
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