Oyster does not directly grant equity or stock options to team members. An equity grant is an agreement is between you and the Team Member.
However, in order for us to process any withholding or reporting, you must inform us of the equity grants you are planning to make or have already made. Please see this article on how to record an equity grant directly in the product.
In general, these are the steps to grant equity to a team member:
- Have an equity plan that accounts for grants to non-employees (you may need to create one if your existing plan does not account for this). The plan should outline the terms of grant, such as the number of options or shares granted, the exercise price, and the vesting schedule.
- Prepare an equity grant agreement for the Team Member, made in accordance with the plan. The agreement outlines the terms of the equity including the grant date, grant price, and vesting schedule.
- Have the equity grant approved by the company’s board of directors.
- Issue the equity agreement to the team member, have it signed, and record the award in your cap table. This can be done through a cap table software.
The equity is considered granted to a TM if and only if all the previous steps have been completed.
Granting equity has tax implications for both your company and the Team Member. Oyster does not provide legal or tax advice and it's a good idea to consult with a tax advisor and a legal professional before implementing an equity plan.