Case | HBS Case Collection | December 2000

Stock Options at Virtua.Net

by Brian J. Hall, Noam T. Wasserman and Carleen Madigan

Abstract

Describes issues facing three young founders of a high-tech start-up in Silicon Valley, including hiring an experienced CEO and negotiating with a potential VC investor. Focuses on the incentive and compensation aspects of negotiating with job candidates (e.g., what percentage of the equity is appropriate to offer) and with venture capitalists (e.g., options-vesting issues).

Keywords: Venture Capital; Stock Options; Executive Compensation; Employee Stock Ownership Plan; Negotiation;

Citation:

Hall, Brian J., Noam T. Wasserman, and Carleen Madigan. "Stock Options at Virtua.Net." Harvard Business School Case 801-324, December 2000.