A Better Offer Letter

At eShares we spend a lot of time thinking about how to better educate employees on startup equity. Even new hires at eShares often don’t understand the equity compensation component of their offer letter. So we decided to create a new offer letter.

I have included highlights of our offer letter with captions below. We are making available a full example of our offer letter, that you can find here. I have also included some highlights below with captions. I hope this will encourage transparency in more companies and help candidates who are currently interviewing at startups. All numbers are accurate for eShares as of 5/18/17.

eshares offer letter cover pageCover Page

better offer letter 2

Welcome letter

better offer letter 3Summary of Offer

better offer letter 4Simplified graph of our capital structure and breakpoints

better offer letter 5Formula for calculating option payouts for exit values greater than $77M

better offer letter 6Tranche-by-tranche table of employee’s vesting schedule

better offer letter 7Brief advice on how we encourage employees to think about their equity

better offer letter 8Overview of benefits

better offer letter 8Home office address and weekly commute schedule (only for California offices)

better offer letter 9Introduction to first week’s schedule and 1-on-1s

better offer letter 10Required legal language regarding option details and pending board approval

better offer letter 11Signature page



Henry Ward

Henry Ward

Henry is our fearless leader with 20 years experience. He started eShares over lunch with a investor frustrated by cap tables. He is from Ann Arbor and went to the University of Michigan. Go Blue!