Team ESOP Guide
Own a piece of Hyro.
Hyro is built by the people in this team. When the company wins, you should win too. That is why we share ownership through our Employee Share Option Plan: a genuine stake in the upside of the business you are helping build every day.
This page explains how the plan works in plain English, and lets you model what your options could be worth as Hyro grows.
Try the calculator ↓How the ESOP works
Four things to know before anything else. No jargon, no fine print surprises.
Eligibility
After 12 months at Hyro you become eligible to be considered for a grant. Grants are discretionary, made under the plan and subject to Board approval. Eligibility is not an automatic entitlement, and your vesting start date is set in your grant documents.
Standard vesting
4-year vest with a 12-month cliff. 25% vests at the cliff, then the remaining 75% vests quarterly over the following three years. Subject to the Hyro ESOP Plan Rules and Board approval.
A$0 exercise price
Standard grants carry a A$0 exercise price. You do not pay anything to convert vested options into shares under the standard terms.
Options are not cash
The value of options depends on company performance, dilution, tax and the plan terms. Value may go up, go down, or be nil. They are also illiquid: there is generally no way to sell until a liquidity event such as a sale or IPO. They are upside, not salary.
On top of salary, never instead
Options under the Hyro ESOP are provided in addition to, and never as a replacement for, salary or wages. They recognise contribution and value creation above and beyond the requirements of the role. Salary is reviewed separately on market terms.
Australian ESS rules
Options are granted under Australian employee share scheme (ESS) rules. Tax treatment varies by individual circumstances, so seek your own independent financial and tax advice.
Standard vesting timeline
4 years total. Nothing vests in year one, then 25% lands at the 12-month cliff, and the rest vests every quarter.
Benchmarks by level and function
Standard grant ranges as a percentage of the company, fully diluted. Ranges vary by function group because the market for talent does: equity competition, scarcity and market data differ across areas of the business.
| Level | Tech & ProductEngineering, data, product, design | Growth & MarketingBrand, social, performance, creative | Operations & CommercialOps, supply chain, CS, finance, admin |
|---|---|---|---|
| Coordinator / Entry level | 0.031% – 0.063% | 0.025% – 0.050% | 0.020% – 0.040% |
| Specialist / Manager | 0.063% – 0.125% | 0.050% – 0.100% | 0.040% – 0.080% |
| Senior / Team Lead | 0.125% – 0.250% | 0.100% – 0.200% | 0.080% – 0.160% |
| Head of Function | 0.250% – 0.625% | 0.200% – 0.500% | 0.160% – 0.400% |
| Executive | 0.625% – 1.875% | 0.500% – 1.500% | 0.400% – 1.200% |
Swipe the table sideways to see all three function groups.
Where these benchmarks come from: Hyro's bands are informed by widely used startup equity data and adapted to our stage. If you want to research the space yourself, look at Carta's equity report data (carta.com), the Index Ventures OptionPlan and Rewarding Talent handbook (indexventures.com/optionplan), Pave compensation benchmarks (pave.com) and Cake Equity's Australian ESOP benchmarks (cakeequity.com).
Which level is my role?
Level is set by the responsibility your role carries, not by title or tenure. Years of experience are a guide only: where responsibility and experience point to different levels, responsibility wins. Your level is confirmed at grant time as part of the review process.
| Level | Typical experience | Responsibility in the role and company |
|---|---|---|
| Coordinator / Entry level | 0 – 2 years | Executes defined tasks within an area, with guidance and review from a more senior team member. Building core skills. Does not yet own an area end to end. |
| Specialist / Manager | 2 – 5 years | Owns a channel, process or area day to day and works independently. Makes routine decisions without sign-off and may guide junior team members. |
| Senior / Team Lead | 5 – 8 years | Owns outcomes across a broader area, leads projects or a small team, and is trusted to make significant calls. Others rely on their judgement. |
| Head of Function | 8+ years | Owns an entire function: its strategy, budget, team and results. Accountable to the executive team for that function's performance. |
| Executive | 10+ years | Sets company-level strategy and is accountable for company-wide results, leading multiple functions or the business as a whole. |
Swipe the table sideways to see the full definitions.
When is the percentage measured?
Your option count is fixed. The percentage is a snapshot taken once, at grant.
The percentage of the company is measured on the day your grant is approved, against the fully diluted cap table at that date: every share on issue plus every option already granted (currently 1,950,712 securities). This is how companies standardly size grants. It is not measured at the one-year cliff or re-set later.
Dollar values use the latest traded share price from Hyro's most recent priced funding round, as recorded in Cake Equity (the current A$18m reference valuation). That is also standard practice: the most recent round price is the best available market price between rounds.
Two things then move over time. Your option count never shrinks. Your percentage gradually dilutes as new shares are issued in future raises, which is normal for every holder including the founders. The aim is that the share price grows faster than the dilution, so the value of your fixed option count keeps rising.
How we size a grant
Four steps, applied the same way for everyone. One important thing first: a grant is a total, one-time award that vests over four years, tied to your role. It is not an amount you receive every year, and it is not an annual top-up on salary.
Function and level set the range
Your role's function group and level place you in a benchmark range from the matrix above. That range is the starting point for every grant.
Salary sense check
As a cross-check, a grant's value at the current reference valuation typically lands around a percentage of annual salary: Entry level roughly 5–15%, Specialist / Manager 10–20%, Senior / Team Lead 15–30%, Head of Function 25–60%, Executive 50%+. This is derived from the matrix above at the current valuation, so both methods agree. And again: that is the total four-year grant, not per year.
Two scores set your spot
Where you land within the range is set by two equally weighted factors, assessed at grant time: performance in role, rated 1–5, and alignment with Hyro's values and culture, rated 1–5. The combined score positions you in the band.
New grants when roles change
New grants can be unlocked when your role meaningfully changes: a promotion, materially expanded scope or responsibility, or exceptional sustained impact, assessed the same way. Not automatic, not annual.
Combined score → position in band
Performance (1–5) plus values and culture (1–5) gives a combined score out of 10.
Estimate a typical grant
Plug in a role and see the indicative range the framework produces. Performance and values ratings are assessed at grant time as part of the review process, not self-assessed, so treat this as a scenario tool, not an offer. Every output is indicative only and Board discretion applies.
What could your options be worth?
Play with the assumptions and watch the numbers move. Everything here is illustrative modelling, not a promise.
Growth trajectory
2,438 options in the real world
A grant of 2,438 options is roughly 0.125% of Hyro today. This follows your input in the calculator above. Here is what that stake is worth at different company valuations, using simple pre-dilution maths.
| Company valuation | Value of 2,438 options (0.125%) |
|---|---|
| A$18m (today's reference) | ≈ A$22.5k |
| A$50m | ≈ A$62k |
| A$100m | ≈ A$125k |
| A$180m | ≈ A$225k |
| A$360m | ≈ A$450k |
Pre-dilution, simple percentage maths shown for clarity: value = 0.125% × valuation. Real outcomes will reflect dilution, tax and plan terms. Use the calculator above to model dilution.
The important fine print
All figures on this page are illustrative only. Nothing here is financial advice, a valuation, or a promise of any outcome. Option value is not guaranteed remuneration and may be nil.
Actual outcomes depend on company performance, future dilution, taxation, your personal circumstances and the terms of the Hyro ESOP Plan Rules, which prevail over anything on this page.
Options are provided in addition to, and never as a replacement for, salary or wages. They recognise contribution and value creation above and beyond the requirements of the role. Salary is reviewed separately on market terms.
Options are granted under Australian employee share scheme (ESS) rules. Taxation treatment varies by individual circumstances, and team members should seek their own independent financial and tax advice.
Options are illiquid until a liquidity event such as a sale or IPO; there is no general market for selling shares or options in a private company. If you leave Hyro, the treatment of your options is governed by the Plan Rules: unvested options generally lapse, and the treatment of vested options is determined under the Plan Rules and by the Board.
All grants remain subject to Board approval, the Hyro ESOP Plan Rules and formal documentation via Cake Equity. If anything on this page conflicts with your grant documents or the Plan Rules, those documents win. Questions? Talk to Steve.