At the end of each calendar year, Circuit pays a team-wide performance bonus. The bonus will be paid in January of the following year, together with your monthly salary.
The bonus amount is calculated as 2.5% of the net new Annual Recurring Revenue (ARR) generated during the year. The bonus is then divided among team members based on their relative salary amounts.
If someone joins part-way into the calendar year, their relative salary percentage will be pro-rated to their start date.
Everyone at Circuit earns equity as part of their overall compensation package. This is done to align the incentives of everyone working here with what's best for the company.
We provide equity in the form of options, which gives you the option to purchase shares from Circuit, at a much lower price than market value.
Options are provided, rather than shares directly, to allow you to defer the taxation associated to a later date. Generally, options are invoked by their holders during a liquidity event, such as the company being sold or going public.
The equity you were offered in your contract with Circuit specifies that it will 'vest' over 5 years. This means you'll unlock 20% of your shares for every year you're at the company. Vesting happens on a monthly basis, meaning each month you work here, you'll unlock the next tranche of your options.
To receive any options, you have to remain at Circuit for at least 1 calendar year. At this point, your entire first year's options will vest immediately, with the normal vesting schedule resuming after that.
<aside> 🤔 We know it is a little complicated, so please let @Sadie Moloney know if you have any questions!
</aside>