March 1, 2016
Flexport Rolls Out Employee-Friendly Equity Plan
Flexport employees who leave the company will have 10 years to exercise their stock options.
Equity, or stock options, are an important part of the compensation package for working at startups. In the event that the employee departs from the company, vested stock options typically expire after 90 days. Flexport joins Pinterest, Coinbase, Quora, and other forward-thinking startups in extending exercise windows from a matter of months to years.
Others have written about this issue in more detail, but in short, the three-month exercise window puts employees who leave a startup in a bind: Either come up with enough cash to exercise (and in some cases face very large tax payments), or let vested options expire.
We’ve removed that constraint. Not only do we believe that the policy is fair, we think it’ll strengthen Flexport.
Flexport is a freight forwarder for the internet age. To claim a chunk of the the $1.1 trillion global freight forwarding spend, we need to attract the very best technologists and logistics experts. Employee-friendly equity compensation is one of the things we use to find the best people. In the long term, we expect the fairness to contribute to a healthier internal culture.
If it sounds compelling to you too, join us to reinvent global trade.