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Equity Grant Guidelines, Made Simple

Equity compensation is a powerful tool for attracting and retaining top talent. In today's competitive job market, companies that offer equity grants are better positioned to hire and keep the best employees. By offering employees ownership via equity in the company, you can motivate them to contribute to the growth and success of the company.

Determining the right amount of equity to grant new hires could be tricky, but doesn’t have to be complicated. Factors to consider are the employee's type of job, job level and country.

Kamsa's equity market data and Equity Model automate creating competitive equity guidelines and ensure you budget shares accurately. Kamsa's equity market data is based on a comprehensive dataset of granted equity to employees across hundreds of leading pre-IPO tech companies. 

Kamsa's market equity data and respective new hire equity guidelines incorporate the following:

  • Job Group: This refers to the job category; Technical jobs typically require special skill set(s) that are harder to find in the market, while Non-Technical jobs are less resource-constrained roles in the market. 
  • Job Level: This refers to the expectations and business needs of a job, and factors in compensable factors required of the job like scope, impact on an organization, and experience.
  • Location: This refers to the country where the employee works.

To have Kamsa establish competitive equity guidelines, shares budget, and respective dilution rate for your organization, provide your company’s preferred shares price, latest 409a valuation, fully diluted shares, estimated new hires in the next year, and basic employee information (such as job title, manager, location, and date of hire). 

The Equity Model will then calculate the recommended new hire grant guidelines and refresh grant guidelines by Job Group, Job Level, and Location. 

Benefits of using Kamsa's equity guidelines:

  • Retain and attract top talent: Offering competitive equity grants, allows you to attract and retain the best talent to grow your company.
  • Fairness: Establishing equity guidelines aligned to Kamsa’s market equity data ensures employees are offered fair equity compensation.
  • Saves time: Kamsa's Equity Model automates the process of calculating the shares you need to budget and the respective dilution rate, saving you lots of time.
  • Expert advice: Kamsa's compensation experts leverage data and best practices across hundreds of companies to develop a clear and consistent approach to your equity program, streamlining the budget approval process with your Board. 

Contact Kamsa today to learn more about our market equity data and how we can customize an Equity Model for your organization.

About Kamsa

Kamsa's Equity Model is the first of its kind to help companies simplify and automate their equity program and grant guidelines; It leverages Kamsa’s proprietary market equity data to generate customized equity guidelines for companies so they can ensure their employees are offered competitive equity grants, while staying within budget.

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