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What is a fixed equity pool?
What is a fixed equity pool?

A fixed equity pool is one where participating team members are given a fixed number of shares of the total allotted shares for that pool.

For Example:

Amy, Bob, and Chris are advisors of the company who were added to an equity pool called the “Advisor Fixed Pool” which has an allotment of 30,000 shares. The company can allocate shares to Amy, Bob, and Chris in whatever amount and distribution it deems fit so long as the total does not exceed the allotted 30,000 shares for that pool.

For example, the company can allocate 15,000 shares to Amy, 10,000 shares to Bob, and 5,000 shares to Chris. The company can also choose not to allocate the entire 30,000 shares and instead only allocate 10,000 shares to Amy, 5,000 shares to Bob, and another 5000 to Chris, while reserving the remaining 10,000 allotted shares in the “Advisor Fixed Pool” to a fourth advisor who may later on join the company.

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