In this article

Revisiting the Vesting Schedule
A look at the typical employee stock option vesting schedule and equity compensation considerations ...
For employee shareholders, exercising options or selling shares is something many consider, especially when there is a personal need for liquidity (such as buying a home or funding education) or a desire to diversify assets.
Culled from conversations with thousands of employee shareholders who have considered liquidity, here are answers to some of the most common questions:
Over the past decade, companies have delayed liquidity events which left many shareholders exploring alternative routes to partial or full liquidity. More shareholders seeking liquidity has been coupled with the maturing of the secondary market for private market assets. This has streamlined the selling process for many investors.
EquityZen CEO, Atish Davda, recently published an article on the investor opportunity in the private markets, stating “the volatility in the public markets is creating a unique opportunity for private market investors. We expect top-tier, IPO-track companies to continually defer their coming out parties, both raising capital and growing privately.” With buyers in the market, this opens the doors for employee shareholders to turn their sweat equity into liquidity and realize this part of their compensation on their terms.
For those facing layoffs, liquidity becomes increasingly important. Many employees have a 30-day window post-termination to exercise their options before they expire. While some companies are extending this window, it still means that employees seeking liquidity to finance their option exercise need to move quickly. EquityZen is here to help those employees understand their option exercise timelines and guide them through a liquidity transaction if and when it makes sense.
As a first step, check your stock option agreement for details on your options: the type of shares, number of shares, vesting requirements and strike price. You will also want to take note of how long you have to exercise your options.
Rather than solely evaluating the relationship between the share price and potential exit price, also consider the percentage growth from the strike price.
A strike price is the fixed price you will pay for one share of stock. You can think of the share price as the price at which a sale happens. The “spread” is the difference between the strike price and the share price when you exercise. This difference translates to your potential gain. For example, say your strike price is $1 and the share price is $10. The spread would come out to $9 (10-1= 9).
Next, review your net worth and your portfolio. Ask yourself: How much is my net worth on paper tied to my company’s equity options? Do I need to diversify my portfolio further?
Startup employees do not always take advantage of their options which are bundled into compensation packages. You are allowed to ask your employer for more clarity about your options. Also, if you have limited access to cash, you can also explore a cashless exercise.
Finally, once you have details on your shares, we encourage you to register your equity on our EquityZen to explore a sale, explore our other blog posts, or reach out to support@equityzen.com to learn more.
A look at the typical employee stock option vesting schedule and equity compensation considerations ...
As companies are staying private longer the need for pre-IPO liquidity has become increasingly impor...
Big Tech isn't just buying startups—it's partnering with them. Learn how the Magnificent 7 (Amazon, ...
Investment opportunities posted on this website are "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Investing in private companies may be considered highly speculative and involves a high degree of risk, including the risk of substantial loss of investment. Investors must be able to afford the loss of their entire investment. See our Risk Factors for a more detailed explanation of the risks involved by investing through EquityZen’s platform.
EquityZen Securities LLC (“EquityZen Securities”) is a subsidiary of EquityZen Inc. EquityZen Securities is a broker/dealer registered with the U.S. Securities and Exchange Commission and is a FINRA/SIPC member firm.
Equity securities are offered through EquityZen Securities. Check the background of this firm on FINRA’s BrokerCheck.
EquityZen Inc. was awarded a 2024 Fintech Breakthrough Award by Tech Breakthrough LLC on March 19, 2025, based on the prior year and covering calendar year 2024, and has compensated FinTech Breakthrough LLC for use of its name and logo in connection with the award. FinTech Breakthrough LLC is a third party and has no affiliation with EquityZen.
EquityZen created the ticker symbols referenced on this page for use solely on the EquityZen platform. They do not refer to any publicly traded stock. EquityZen does not have an affiliation with, formal relationship with, or endorsement from any of the companies featured and none of the statements on the site should be attributed to those companies.
“Market Activity” and other transactional data displayed on this website is compiled by EquityZen and is confidential and historical in nature. Unauthorized use, distribution or reproduction is prohibited. Transactional information does not guarantee future investment results. EquityZen cannot guarantee finding or approving a transaction at any displayed price.
EquityZen.com is a website operated by EquityZen Inc. ("EquityZen"). By accessing this site and any pages thereof, you agree to be bound by our Terms of Use.
EquityZen and logo are trademarks of EquityZen Inc. Other trademarks are property of their respective owners.
© 2025 EquityZen. All rights reserved.
EquityZen Inc.
30 Broad Street,
Suite 1200
New York, NY 10004