While I was Co-Founder and COO of Atomos Space, I juggled executing on the company's vision with meeting the obligations of all stakeholders. As founders, we charge ahead with what we think is best. When it comes to issuing shares in your company, however, the IRS, SEC, and the State of Colorado have much to say on what you can and cannot do. The Securities Act of 1933, the Uniformed Securities Act, IRC 409(a), IRC 83(b), SEC 701…The variety and complexity of equity compensation can be convoluted and time consuming.
In my new role as VP of Finance and Investments with The Millstone Evans Group, I want to help founders, start-ups, and employees learn from my experience (and mistakes) so that they can make better, faster decisions and get back to building. In this overview of equity compensation, I talk through the basics of corporate governance, the nuances of a Stock Incentive Plan, and the implications of the three most common types of grants given to employees.
