Tenure-Based Ownership – A distributed equity model for worker ownership
Here are some examples:
While there are clearly more complicated examples (typically the bigger the company, the more complicated the formula becomes), this actually follows some of the basic principles of traditional Silicon Valley equity pretty closely:
There’s also a lot that’s different about this plan. It also dilutes the vested equity of those who leave the company faster than the traditional method, since your equity is directly tied to the total amount of time you’ve spent at the company. Some other notable differences include:
There are a ton of open questions with this equity model.