Employment briefing · 19 March 2026
Equity in an offer: the documents behind the headline
A practical checklist for tracing vesting, leaver treatment, exercise and liquidity terms in an executive employment offer.
An equity number in an offer letter is only an entry point. The economic meaning usually sits across plan rules, an individual grant, shareholder documents and later decisions by a board or administrator.
Identify the instrument
Options, restricted shares, performance units and virtual shares create different rights and tax questions. Record the exact instrument, quantity, reference value and granting entity.
Follow the vesting calendar
Check the start date, cliff, periodic vesting, performance conditions and who certifies achievement. Ask what happens if the formal grant occurs months after employment starts.
Read every exit category
“Good leaver” and “bad leaver” labels may hide detailed definitions. Trace vested and unvested treatment for resignation, employer termination, disability, retirement and change of control.
Separate award from liquidity
Vesting does not guarantee a route to cash. Understand exercise windows, transfer restrictions, repurchase rights and whether an exit event is required. Cross-border hires should obtain tax advice in each relevant jurisdiction before assigning a net value.