A Dutch EIP Questionnaire
Gathering data for Founders to help make informed decisions around Employee Ownership and Incentive Plans. Results will be shared freely and without a marketing wall, and should serve to make Employee Ownership setups less stressfull🚀 - please select one 'best' option where appropriate to make the info most actionable. And: thanks for taking the time!
Name (optional)
First Name
Last Name
Email (drop if you want the results😊)
example@example.com
Gut Feelings
In general, which type of Incentive Plan do you think encourages achieving company goals best?
Cash-based Plans [e.g. KPI/Individual Bonus Plans, Stock Appreciation Rights of Profit Sharing Arrangements]
Equity-based Plans [e.g. Stock Option Plans, Warranties or Employee Stock Plans]
A mix of both.
And which type of Incentive Plan do you think is generally most 'Investable' / preferable for Investors?
Cash-based Plans [e.g. KPI/Individual Bonus Plans, Stock Appreciation Rights of Profit Sharing Arrangements]
Equity-based Plans [e.g. Stock Option Plans, Warranties or Employee Stock Plans]
A mix of both.
Percentages
What percentage do you believe Innovative & Growth companies should target Staff to be on the cap table for [regardless of the method] for the best results?
Up to 5%
5% - 10%
10% - 20%
Over 20%
And what percentage should the Founding Team target up to Exit?
Doesn't really matter as long as they retain control [e.g.: voting mechanism]
10% - 25%
25% - 50%
Always a mojority
Experiences
Which of the following 'Main Categories' of the following Incentive Plans have you been involved with either as an Employee/Beneficiary or as Company/Founder/Investor?
KPI Bonus Plan [Individual Bonus Plan based on personal or team targets]
Virtual Stock / Company Performance Bonus Plan [Equity-linked Bonus Plans like SARs or Profit Pools, etc]
Stock Option Plans [ESOPs / Warranties]
Depositary Stock or 'Share Certificate' Plans [Equity ownership involving a 'STAK' or Shareholder Trust, so no voting rights]
Company Stock Ownership Plans [Full ownership of Regular Company Stock or a separate Share Class]
And which of the following 'Main Categories' do you think is -generally speaking- 'Simply the Best' for Staff/Beneficiaries?
KPI Bonus Plan [Individual Bonus Plan based on personal or team targets]
Virtual Stock / Company Performance Bonus Plan [Equity-linked Bonus Plans like SARs or Profit Pools, etc]
Stock Option Plans [ESOPs / Warranties]
Depositary Stock or 'Share Certificate' Plans [Equity ownership involving a 'STAK' or Shareholder Trust, so no voting rights]
Company Stock Ownership Plans [Full ownership of Regular Company Stock or a separate Share Class]
And for Company/Investors?
KPI Bonus Plan [Individual Bonus Plan based on personal or team targets]
Virtual Stock / Company Performance Bonus Plan [Equity-linked Bonus Plans like SARs or Profit Pools, etc]
Stock Option Plans [ESOPs / Warranties]
Depositary Stock or 'Share Certificate' Plans [Equity ownership involving a 'STAK' or Shareholder Trust, so no voting rights]
Company Stock Ownership Plans [Full ownership of Regular Company Stock or a separate Share Class]
Upsides & Downsides
Do you think that a financial Downside Risk like an upfront investment or a buy-in loan ['Skin in the Game' / a potential for losing money in downside or leaver scenarios] makes EIPs more efficient?
Yes
No
For non-Founder/Board/CXO-positions, how significant a Downside Risk / Exposure do you think is most efficient?
1 - 3 Months' Wages
3 - 6 Months' Wages
6 - 12 Months' Wages
> 1 Annual Salary
And for non-Founder/Board/CXO-positions, how significant should the cumulative Upside Potential be [min.] when Milestones are hit?
3 - 6 Months' Wages
6 - 12 Months' Wages
> 1 Annual Salary
Life-changing Event.
Clauses & Specifics
Do you think that, as a rule of thumb, Incentive Plans work better if they are Unavoidable / Company Wide, or Opt-in / Election-based?
Unavoidable
Opt-in
Do you think that as a rule of thumb, Staff should be able to keep any (Vested) Units after they leave the company in a non-conflict situation?
Yes
No
Which of the Vesting Schemes below do you think works best?
1-year Cliff, 4-year Incremental Vesting [25%/yr], Accelerated Vesting in case of Exit
No Cliff, 4-year Incremental Vesting [25%/yr], Accelerated Vesting in case of Exit.
4-year Reverse Vesting: 100% Vesting Upfront, 4-year Incremental Lapse of '$0 BuyBack / ClawBack'-Clause [25%/yr]
No Vesting.
If you had constraints, how would you focus your tailor-making time and energy?
Off-the-shelf Subscription Clause [Unit Qty, Value, Transfer Method], Off-the-shelf Vesting Clause [Incremental Granting of], Bespoke Leaver Clause.
Off-the-shelf Subscription Clause, bespoke Vesting Clause, Off-the-shelf Leaver Clause.
Bespoke Subscription Clause, Off-the-shelf Vesting Clause, Off-the-shelf Leaver Clause.
If you there were a perfect trade off and you had to choose between an EIP's Administrative & Financial Simplicity and its Tax & Financial Efficiency, which would you prioritize?
Simplicity [Minimize Admin]
Efficiency [Minimize Taxes and/or Exposures]
Submit
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