In this episode, we dive into the complexities of equity stock compensation for startup employees, with Špela Prijon and Tamas Varkonyi — the Co-Founders of EquityPeople. We run through a range of topics related to ESOPs and cap table management, including the importance of aligning equity incentives with company goals, the challenges of determining fair equity distribution, and the common pitfalls that founders encounter. We also cover some current trends in equity compensation across different regions, underscoring the necessity for founders to be informed and proactive in their approach to equity management. 00:55 The Evolution of Equity Compensation 02:33 The Role of Equity in Startups 05:13 Challenges in Implementing Equity Strategies 07:57 Investor Influence on Equity Distribution 10:49 Taxation Issues with Equity Compensation 13:36 Setting Standards for Equity Practices 16:25 Determining Fair Equity Distribution 18:55 The Future of Equity Compensation 34:17 Pricing Equity and Risk Management 35:56 The Evolution of Equity Perspectives 37:45 Understanding Pool Sizes and Equity Allocation 39:53 Navigating Equity Topping Up Strategies 42:57 Benchmarking Equity: Best Practices and Pitfalls 45:15 The Role of Benchmarking in Equity Planning 47:45 Marketing Equity Schemes Effectively 50:29 The Importance of Transparency in Equity Disclosure 52:51 Common Mistakes in Equity Management 54:13 The Need for Structured Grant Systems 01:00:58 Trends in Equity Compensation and Market Dynamics