Instructions

- This model forecasts non-founder employee equity over time (founder and investor ownership is not included)
- Use this template to plan hiring needs, fundraising needs, and expected future valuation.
- After completing the plan, this model provides of perspective on the long-term employee ownership resulting from the ESO

- All blue text represents an input, which the user should update or customize
- All purple text represents an initial employee options package
- All orange text represents a retention options grant

- By expanding the grouped cells on the left-hand side, you can expose extra rows set up to add additional employees
not included)

hip resulting from the ESOP

ditional employees
Employee Stock Options Plan (ESOP) Model

Year 0 Year 1
Value Shares Value Shares Shr. Price
NA 10,000 $3M 10,000 $300

Options Total Equity Grant Total Equity

Salary Multiplier Options (%) Amount Options (%)

Total Non-Founder Employee Ownership 6.50% 9.00%

Founding Team
CTO $120,000 1.00x 400 4.00% 400 4.00%
Product Manager $80,000 0.80x 250 2.50% 250 2.50%

Year 1 Hires
Lead Engineer $80,000 0.50x $40,000 133 1.33%
Lead Designer $70,000 0.50x $35,000 117 1.17%

Year 2 Hires
Sales Director $70,000 0.30x
Salesperson $40,000 0.10x
Engineer $60,000 0.25x

Year 3 Hires
Marketing Director $60,000 0.30x
Engineer $50,000 0.25x
Salesperson $40,000 0.10x
Office Manager $30,000 0.10x

Year 4 Hires
Employee $50,000 0.25x
Employee $50,000 0.25x
Employee $50,000 0.25x
Employee $50,000 0.25x
Employee $50,000 0.25x

Year 5 Hires
Employee $50,000 0.25x
Employee $50,000 0.25x
Employee $50,000 0.25x
Employee $50,000 0.25x
Employee $50,000 0.25x
 Year 2 Year 3
Value Shares Shr. Price Value Shares Shr. Price
$5M 10,000 $500 $15M 12,000 $1,250

Grant Total Equity Grant Total Equity

Amount Options (%) Amount Options (%)

11.64% 10.20%

$60,000 520 5.20% 520 4.33%

$32,000 314 3.14% 314 2.62%

133 1.33% $20,000 149 1.24%

117 1.17% $17,500 131 1.09%

$21,000 42 0.42% 42 0.35%

$4,000 8 0.08% 8 0.07%
$15,000 30 0.30% 30 0.25%

$18,000 14 0.12%
$12,500 10 0.08%
$4,000 3 0.03%
$3,000 2 0.02%
 Year 4 Year 5
Value Shares Shr. Price Value Shares Shr. Price
$30M 12,000 $2,500 $50M 14,000 $3,571

Grant Total Equity Grant Total Equity

Amount Options (%) Amount Options (%)

10.78% 9.48%

$60,000 544 4.53% 544 3.89%

$32,000 327 2.72% 327 2.33%

149 1.24% $20,000 155 1.11%

131 1.09% $17,500 136 0.97%

$10,500 46 0.39% 46 0.33%

$2,000 9 0.07% 9 0.06%
$7,500 33 0.28% 33 0.24%

14 0.12% $9,000 17 0.12%

10 0.08% $6,250 12 0.08%
3 0.03% $2,000 4 0.03%
2 0.02% $1,500 3 0.02%

$12,500 5 0.04% 5 0.04%

$12,500 5 0.04% 5 0.04%
$12,500 5 0.04% 5 0.04%
$12,500 5 0.04% 5 0.04%
$12,500 5 0.04% 5 0.04%

$12,500 4 0.03%
$12,500 4 0.03%
$12,500 4 0.03%
$12,500 4 0.03%
$12,500 4 0.03%