Sample Questionnaire for Equity Compensation Plan

Please fill out this questionnaire to the best of your ability. If you do not know the answer to any question below, please indicate, “don’t know” next to the question. If you want to supply any additional information besides the posted questions, please do so. These questions are not all-inclusive. Once we prepare the first draft of the Equity Compensation Plan and relevant agreements, we’ll discuss the possible terms & conditions in greater detail to determine what is necessary and/or desirable for the company’s purposes.

1. Please state briefly your understanding as to how you want the equity compensation plan being structured if you have anything in mind.

2. Please state the scope of your agreement regarding the matter if you discussed anything with the prospective employees.

3. How many shares did the company register?

4. How many shares are being issued to the founders?

5. How many shares the company is willing to allocate for the equity compensation pool?

6. Presently to how many employees the company is willing to provide the equity interest?

7. How many shares and % of the company interest will be provided to each?

8. Will the company be providing equity compensation to the employees only or possibly to the independent contractors as well now or in the future?

9. Will the company be providing restricted stock or options as equity compensation?


Restricted stock is the actual shares being issued to the employee; option is the right to buy the shares of the company in the future at the present price.


10. Do you have any preference to the vesting terms?

11. If you answered no to #10, do you agree with the condition that 25% of the granted shares/options will vest within 1 year from the date of the agreement with the employee?

12. Do you agree with the condition that after one year 1/48 of the granted shares/options will be vesting on a monthly basis until all 100% of the granted rights vests after 4 years of employee’s engagement with the company?  

13. Do you want the vesting term stop running in case the employee does not work due to illness, disability, or holidays, time off, etc.?

14. If you are giving an option to buy the shares in the future, did you already set the price?

15. What form of payments the company will accept – cash, check, promissory note, property, including IP? 

16. Should this Equity Compensation Plan survive a possible change of control in the company and be binding for the successors?  

17. Should the granted rights be inheritable in case of employee-shareholder death or should the company have the right to buy the shares back?

18. The name, address, phone number and email of the company.

19. In which state the company is registered?

20. In which state the company is conducting business (has headquarters, employees, most business activities)?


Information about the employee:

1.      Full Name

2.      SSN

3.      Date of Birth

4.      Full address (mailing & actual)

5.      Phone number & email

6.      Marital status

7.      Years with the company

8.      Position in the company

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