Talent is the lifeblood of any growing business.
And when you’re building a tech start-up from scratch, those early hires –people who believe in your mission and share your ambition — can truly shape your IT company’s future.
Awarding equity is one of the most powerful ways to bring these team members into the heart of your business, writes chartered accountant Helen Christopher, founder of Beansprout Consultancy.
Little wonder, then, it was last month recommended to women in tech as part of how to start up a tech business.
Will you give staff equity? You'll be giving more than a financial reward
Giving equity is more than just a financial reward.
It shows trust, builds loyalty, and offers a shared sense of ownership that can turn your vision into a collective purpose.
For female founders in tech, it’s also a bold signal. It says:
We’re building something meaningful, and we’re doing it together
But how do you give equity the right way?
In my experience advising female-founded companies, here are five things every founder should consider to give equity correctly.
Five best-practice ways to give tech company equity
1. Be clear on the 'why'
Before you offer equity to your tech start-up’s team, take a step back.
What’s your reason? Ask three questions to be clear on your motivation for granting equity.
- Are you attracting top talent you can’t yet afford to pay full market rates or salaries?
- Are you rewarding loyalty and long-term contribution?
- Are you trying to retain someone vital to your growth?
Equity isn’t just a ‘nice-to-have’—it’s a form of deferred compensation that gives employees a real stake in your business.
Done well, it aligns your team’s goals with your own. But it must be handled intentionally.
2. Choose the right structure
There’s no one-size-fits-all approach with granting equity as a woman founder of your own technology enterprise. But the right structure depends on your business stage; its legal setup, and your ambitions.
For UK limited companies, the most common equity options include:
- Ordinary Shares – full ownership, but beware they may bring tax and voting implications.
- Growth Shares – allow employees to benefit from future success, without full rights from day one.
- EMI Share Options – the ‘go-to’ for many startups. EMI (Enterprise Management Incentive) schemes are flexible, tax-efficient, and employee-friendly.
Never promise equity informally. Get expert advice, document everything properly, and make sure it aligns with your long-term goals.
3. Granting equity mindset -- think long-term: vesting and leaver terms
Company equity shouldn’t be handed over on day one.
A vesting schedule encourages commitment — typically, shares are earned over four years with a one-year “cliff”, meaning nothing is granted until 12 months of service.
You’ll also want to include leaver provisions.
Why? Well, leaver provisions make clear what happens if a member of staff leaves the business early or departs under less-than-ideal circumstances. These provisions serve to protect both you and the company.
4. Make equity easy to understand
Be transparent and clear. When awarding equity, explain:
- What they’re getting;
- When it’s granted, and how it’s granted;
- What it means financially;
- What rights or responsibilities come with the equity.
Don’t assume everyone understands equity, options, or tax implications –especially in early-stage teams.
Consider offering a Q&A session, or bringing in an adviser to help make equity feel accessible and empowering.
5. Get the right advice from the start
Equity may feel like an internal decision for you as a female tech company owner, but it’s also a legal and tax matter.
Skipping professional advice to save money can cost you dearly later.
To grant equity, you’ll need to bring in two important professionals or advisers to help head off any costly headaches later on down the line:
- A corporate solicitor — to structure and document share agreements.
- An accountant or tax expert — especially if you’re exploring EMI schemes. See your appointment of an accountant as an investment in building a resilient, scalable business — one where everyone knows where they stand and why it matters.
TL; DR: Grant company equity as a female tech company boss
Awarding equity is a smart, strategic move. It can energise your team, build lasting commitment, and reinforce a culture of shared success.
As a female founder in tech, giving equity can be a powerful way to grow not just a company, but a community of people who believe in what you’re building. Just make sure you do it with care, clarity, and confidence.
Helen Christopher
Chartered accountant, Helen Christopher, is CEO of Beansprout Consultancy, an accountancy and business mentoring practice that supports ambitious service-based business owners.
Helen qualified as a chartered accountant in 1995 with Price Waterhouse (now PwC), becoming an FCA in 2016.
Helen has held senior-level roles in the corporate world as head of finance and chief operating officer in a number of accountancy practices over the years, before founding Beansprout in late 2023.
Helen is passionate about ensuring business owners have clarity and confidence around their numbers so that their personal goals align with business strategy.
