ElevenLabs raised a $100M round entirely for employee secondaries. The CEO's rationale is that by allowing early team members to de-risk and realize financial gains, it solidifies their commitment to the company's multi-year mission rather than creating pressure for a quick exit.

Serial acquirer Lifco improves post-acquisition performance by having sellers retain an ownership stake in their business. This goes beyond typical earn-outs, keeping the founder's expertise and incentives aligned with the parent company for long-term growth, rather than just hitting short-term targets.

Palo Alto Networks' M&A playbook mandates that acquired founders, who out-innovated internal teams, take charge. This empowers the founders and leverages their proven expertise, even if it unnerves existing employees. The people who were winning in the market should be put in charge.

When Nikesh Arora joined Palo Alto, he didn't ask for a raise. He asked for seven years of the previous CEO's pay ($20M/year) granted upfront as stock with a seven-year vest. This single, long-term grant fully aligned him with shareholder value and simplified future compensation discussions.

Palo Alto Networks' M&A playbook defies convention. Instead of integrating an acquisition under existing managers, they often replace their own internal team with the acquired leaders. The logic is that the acquired team won in the market with fewer resources, making them better equipped to lead that strategy forward.

Elon Musk's ambitious, performance-tied compensation plan isn't just about Tesla. It establishes a powerful precedent for other founders, like those at late-stage unicorns, to negotiate for massive new equity grants by tying them to audacious growth targets, reshaping founder incentive structures.

When a growth company stalls below IPO threshold and PE buyers are absent, the crucial move is to reignite the founder's motivation. An "Equity for Growth" (EFG) grant, tied to future performance, gives vested founders a new reason to pursue a second, multi-year act.

To incentivize Clapp's founders, part of the deal included convertible bonds in Lemlist's parent company. This structure avoids the complex process of setting a formal valuation for Lemlist today, instead granting the founders the right to buy shares at a 20-30% discount during a future liquidity event.

To retain founders who've already cashed out, use a dual incentive. Offer rollover equity in the new parent company for long-term alignment ('a second bite at the apple'), and a cash earn-out tied to short-term growth targets. This financial structure is crucial when managing wealthy, independent operators who don't need the job.