Equity Runway report
The Equity Runway report is an interactive report that displays the company’s equity pool runway based on various inputs, such as headcount hiring plans, and tenure and performance refreshes. The report can be used to ensure your equity pool doesn’t run out too early by inputting your current hiring plan and employee grant information. Follow the steps below to use the Equity Runway report.
Enter your hiring plan into the Anticipated Hiring tab.
The Assumptions tab encompasses the benchmark data that serves as the foundation for calculations within the report, including company details, various triggers for compensation events, and the corresponding reasons for equity grants. Specifically:
- Tenure grant cadence based on start date: How long after an employee's hire date they are expected to receive a 'refresh' grant.
- Tenure grant percentage of benchmarks: The percentage of the benchmark for an employee's current role (from your plan) that you intend to grant to the employee as part of a refresh or tenure grant.
- Promotion grant cadence based on start date: How long after an employee's hire date they would be expected to be promoted. We assume that the promotion grant will be the difference between the benchmark for the employee's current level and the next level within the same role.
The Existing Employees tab contains all current employee data, pulled from Carta and your HRIS, as well projections for future equity grants based on the inputs in the Assumptions tab.
You have the option to designate certain employees as "true-up = Yes" and specify a "true-up" date if you wish to account for the equity adjustments needed to align their compensation with market benchmarks.
After entering the necessary information, click into the Burndown Model tab. The report will generate the company’s equity burn forecast based on the inputted data.
The data in the various OUTPUT tabs can be used in your own company reports, including Monthly Sums, Tenure for Period, Promotion for Period, and True-up for Period.