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Dictionary by pitch.dog
Cap table, ownership & dilution · Core

Employee ownership

Also called: employee equity

ELI5

The part of the company owned by employees.

Used in conversation

“The deck should not count ungranted pool as employee ownership.”

Definition

Equity held or potentially held by employees through shares, options or other awards.

Here “Employee ownership” means: Equity held or potentially held by employees through shares, options or other awards.

Pitch context

You will see “Employee ownership” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches cap table, ownership & dilution.

Why it matters: In cap table, ownership & dilution, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 5

Direct term-level sources and supporting source families.