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1 min read

Creating a culture of ownership – equity & transparency

Field Guide
1 min read

Creating a culture of ownership – equity & transparency

Field Guide

TL;DR

  • Equity is how you align people’s hearts and minds with the mission. It signifies commitment.

Why equity matters

Generous equity isn’t charity, it’s strategy. When employees own part of the company, they think and act like owners. That mindset compounds.

At Unusual, we encourage founders to design an equity philosophy early. Be intentional, transparent, and consistent.

INSIGHT:  “You can’t buy loyalty. But you can create alignment.”

The three steps

  • Set expectations
    • Founders should retain 50–70% pre-Series A.
    • Be generous but disciplined. The pie will grow if everyone builds value.
  • Create an equity framework
    • Develop defensible equity bands for early roles.
    • Keep documentation transparent — in Carta, Notion, or your internal wiki.
    • Refresh grants every 2–3 years to retain top performers.
  • Be transparent
    • Explain vesting and refresh logic.
    • Talk about company valuation and exit math.
    • Publish your equity philosophy internally.

FOUNDER STORY: Harness
When Harness formalized its equity plan, co-founder Jyoti Bansal made one rule: transparency above all. Every employee could see the logic behind equity bands and refresh schedules. That openness turned equity from a mystery into motivation — and helped Harness build a high-trust, high-performance culture.3. Close with transparency — Align early on compensation expectations. Offer multiple mix options (cash/equity).


CHECKLIST: Equity best practices

  • Discuss equity philosophy with co-founders early.
  • Use standard 4-year vesting with a 1-year cliff.
  • Explain equity math in your offer letters.
  • Revisit benchmarks every 6–12 months.
  • Reward performance with refresh grants.

PRO TIP: Equity storytelling matters. Explain what ownership means at your company.

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