Why do we have an Equity Refresh Program?
At Sourcegraph, we believe that our teammates are our most valuable asset. As part of our commitment to attracting and retaining top talent, we offer an equity refresh program that rewards teammates who meet or exceed our “high bar” performance expectations.
Our equity refresh program is designed to provide ongoing incentives for top performers to stay with the company and continue to contribute to our success. We believe in Sourcegraph’s future success, and by offering annual equity grants to existing teammates, we aim to create a sense of ownership and alignment between our teammates and the company. When Sourcegraph wins, we all win.
All full-time teammates who meet or exceed our “high bar” performance expectations will be eligible for participation in the equity refresh program. We reward teammates who meet or exceed our “high bar” because we believe in recognizing and rewarding exceptional contributions. This approach helps to motivate and retain our most valuable employees, while also creating a culture of high performance.
To be eligible, you must meet the following criteria:
- Performance: teammates must receive an impact review rating of “meeting” or “exceeding” during both the 1H and 2H impact review cycles. Teammates who got a 3 in either, or both, the 1H and 2H review cycles are not eligible for an equity refresh grant.
- Tenure: you must have been with the company for 8+ months to be eligible.
- Hours worked: you must work full-time.
Note: teammates who received an equity refresh in 2H are not eligible for an additional grant in 1H .
When does the equity refresh take place?
Sourcegraph’s equity refresh program takes place annually in alignment with the 1H Impact Review cycle, which occurs in the first quarter of each fiscal year. The decision to grant equity awards annually was made to provide ongoing incentives for top performers and valued members of the team.
How is the equity refresh grant size determined?
Equity grant sizes are determined based on level and performance rating, as outlined in this chart. We believe the below grant sizes are generous and are aimed to create a long-term incentive for valued teammates to stay with the company and contribute to our growth and success.
To determine the grant size, we use the past 12-month Impact Review score average. The past 12-month average is used to account for any fluctuations in performance or level over time, and to provide a fair and consistent method for determining grant sizes. If you don’t have 12-months of performance that has been scored in Impact Review, we will default to your performance score from the 1H review cycle.
Example for IC1:
- You got a 2:2 in 2H (68 options)
- You got a 1:2 in 1H (171 options)
- Your equity grant would therefore be: 120 (rounding up)
Note: *the cash details in the linked chart represent gross, pre-tax value of your proposed option as of the last round of funding (assuming the option is 100% vested). These are not a cash bonus.
To better illustrate the value of the equity grant, please view our calculator.
Similar to our new hire equity vesting schedule, all equity refresh grants are subject to a 4-year vesting schedule, with a 1-year cliff.
When do employees receive the equity grants?
Teammates receive their equity refresh grant in alignment with the results of their impact review that takes place in the first half of a fiscal year. In , all equity refresh grants will begin vesting on April 1st, 2023.
How do we communicate Equity Rewards to recipients?
Once the equity grant has been approved, the People Team will provide an equity grant letter detailing the equity grant size, value, and vesting details. The direct manager will then schedule a 1:1 conversation with the recipient to communicate the reward. All equity grants must be approved by the Department VP, VP of People, Finance, and our CEO.
The following should be expressed in the communication to the recipient:
- Explain why the teammate received the additional equity grants. Highlight the performance and attributes we want to continue to motivate.
- Explain the timing and value of the awarded equity grant.
Monitoring and Adjustment:
The equity refresh program will be monitored regularly to ensure that it is achieving its goals and making the intended impact on employee motivation and retention. We reserve the right to change the above % guidance at any time as the business evolves. Adjustments may be made as necessary to ensure the program remains aligned with Sourcegraph’s goals.