Document background
The Founder Vesting Agreement is a critical document in the establishment and governance of Irish companies, particularly startups and growing businesses. It is typically implemented at company formation or during early funding rounds to protect the interests of both the company and its founders. The agreement ensures that founders earn their equity stakes gradually through continued involvement and contribution to the company's success. A well-structured Founder Vesting Agreement under Irish law includes essential elements such as vesting schedules, cliff periods, acceleration provisions, and procedures for handling various departure scenarios. It helps prevent situations where founders depart early with full equity stakes and provides clarity on equity ownership rights and obligations. The document must comply with Irish company law, tax regulations, and corporate governance requirements, making it an essential tool for startup formation and risk management.
