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I get a lot of questions from entrepreneurs about providing equity to employees. This is a complex subject with many opinions. In my own past, I was the beneficiary of a stock option plan that rewarded long term involvement in the company. It worked well. Several times when I considered leaving for something new, the options kept me vested in my company and committed to the company’s success.
I read a post the other day written by Jason Fried of 37signals. Titled “An alternative to employee options/equity grants” the post tells the story about how his team handled the equity question in different way. It is really worth a read. What do you think of his approach?