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. We are sharing an example of our offer letter, which 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.

eshares offer letter cover pageCover page

better offer letter 2Welcome letter

better offer letter 3Summary of all relevant salary and equity information.

better offer letter 4High-level view of organization chart and zoom-in of new employee’s team.

better offer letter 5Explanation of how we set salaries

better offer letter 6Simplified graph of our capital structure and breakpoints

better offer letter 7Formula for calculating option payouts for exit values greater than $77M

better offer letter 8Tranche-by-tranche table of employee’s vesting schedule

better offer letter 9Brief advice on how we encourage employees to think about their equity

better offer letter 10Overview of benefits

better offer letter 11Home office address and weekly commute schedule

better offer letter 13Introduction to first week’s schedule and 1-on-1s

better offer letter 15Required legal language regarding option details and pending board approval

better offer letter 16Signature page