While incentivizing key employees with warrants rather than a high salary is a common remedy to attract and retain talent in startups, it’s current relevance is crystal clear: With 2020 expected to feature limited funding, and startups not exactly bursting with cash, warrant programmes are a way to come around current and future limited liquidity. Not least for limiting layoffs, compensating salary reductions and keeping key employees motivated, while they help founders ride the storm.
Yet reshuffling the option pool and getting new warrant programs in place for employees is no less complex than setting the programs up in the first place. In this session we discuss how founders can utilize warrants as a remedy in the times of COVID-19 but also what precautions they need to take in the process
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