Can I pay my employees in equity and not in cash?

Yes and no.

You can create an option pool and you should create an option pool – all equity grants should be made from the option pool to employees (non founders) and subject to a restricted stock grant agreement (with vesting, etc).

BUT you cannot pay in just equity – labor laws are going to step in on the analysis, people need to be paid wages.

Was this article helpful?
0 out of 0 found this helpful



Please sign in to leave a comment.

Have more questions?
Submit a request
Share it, if you like it.