Carta, the equity management platform, has joined forces with some of Europe’s leading law firms and venture capitalists to create a charter for managing employee equity.

This charter offers a practical, people-first approach to employee equity—clear principles for startups that want to build fair, motivating, and scalable programs. Whether you're just starting or scaling across regions, these guidelines can help you make equity a meaningful part of your company culture.

You can read the full article and download the charter at Carta’s blog

TL;DR on Carta's charter for employee equity:

1. Equity is an incentive — explain it clearly and continuously

Be upfront about both risks and rewards. Use plain language to explain terms like strike price, dilution, and taxes. Keep communication ongoing with FAQs, Q&As, and educational support.

2. Start with data, not intuition

Use benchmarks and salary multipliers from the outset to guide fair and consistent equity decisions. Build a scalable framework that evolves as your team grows.

3. Localise equity to win global talent

Align packages with regional expectations. Optimise for local tax and adjust for market differences, especially when hiring internationally.

4. Motivate top performers with equity refreshers

Equity shouldn't be a one-off. Offer performance-based top-ups to keep standout team members engaged and committed.

5. Keep leaver policies simple — default to ‘good’

Most team members should keep their vested equity unless there’s gross misconduct. Avoid overly complex rules that create confusion or unfairness.

6. Make equity a board-level priority

The board should set clear equity principles and appoint a representative to advocate for employees. Equity is strategic—it deserves oversight at the highest level.

7. Equity and performance go hand in hand

All early employees during the growth stage should be eligible for equity - assume high performance from day one. Use a one-year cliff to ensure commitment, and identify fit early.

 

The Fair Share charter provides a strong set of principles and recommendations for startups managing employee equity. At Sweqlink, we’d love to see this thinking extended further—to include people contributing outside of traditional employment. Contractors, freelancers, collaborators, and specialist advisors all play a role in early-stage growth. When these individuals work for sweat equity they don't have access to the same benefits as equity compensated employees. A truly inclusive sweat equity model should reflect that.