In today’s speed-cast, Alexander and Peter cover reverse vesting. The key component of reverse vesting is that rather than granting equity to an employee over time, all the equity is granted at the outset the company has the right to buy back shares if the founder of the company leaves. This offers the benefit of reducing tax liability to the employee as the company grows, as well as reducing the administrative and legal costs of tracking shifting equity over the vesting period.
What is reverse vesting, and how does it compare to vesting in general? Why might you want to reverse vest? What are the tax benefits? How does an 83(b) election assist an employee?
Tune in to learn more.