Posts Tagged ‘board of directors’

Wilson: The Board Of Directors – Selecting, Electing & Evolving

Fred Wilson (USV) must not be at SXSW because he’s got a great post up titled The Board Of Directors – Selecting, Electing & Evolving. While having a great post up and being at SXSW don’t have to be mutually exclusive, all of the other VC Posts that I saw this morning said something like “here’s where I’m going to be at SXSW – come find me.” Or they are tweeting “I’m still awake and I’m at an epic party.” Or they are asleep and hung over. But they are definitely not writing posts about boards of directors.

Fred talks about why a company should have a board, how the board evolved over time, and what the high level function of the board is. Having been on some boards with Fred, I hope he goes deeper in a series about boards on what boards should and should not do, especially in cases where the company is doing well, or not doing well.

As a bonus, he snuck in a tidbit near the end about the dynamics of the Twitter board. I wonder if anyone will notice.

Wenger: Presenting Option Grants to Boards

Today’s VC post of the day is from Albert Wenger (USV) and titled Presenting Option Grants to Boards. This is feedback I give to CEOs 98% of the time after my first board meeting. While there is no standard for how to present option grants, Albert lays out a very clear set of eight pieces of data he likes to see. The first four are the the columns in the spreadsheet and each employee / option grant are the rows. The next two are footnotes for options grants that aren’t standard. And the last two are contextual data that should always be included since board members are on multiple boards and won’t remember this from company to company.

Here’s are the eight pieces of data – go read the post for more details on why all eight are necessary.

Spreadsheet data:

  • Employee name
  • Title/role at company
  • Absolute size of grant in number of underlying shares
  • Percentage size of grant fully diluted

Footnotes data (for option grants that aren’t standard)

  • Special vesting considerations that differ from the plan
  • For refresh grants: how many options does the employee already have and how far are those vested?

Context data

  • Total size of option pool and remaining available pool (absolute numbers and percentages fully diluted)
  • Grant size bands by role (if you have established those already) — if not, include existing employees in similar roles for comparison (including their start dates)