Nicholas Pezolano npezolano

Adjusted Free Cash Flow (AFCF) for Real Estate Issuers

Methodology Guidance Note

Prepared by: Claude Code & Reggie Chan Date: October 22, 2025 Version: 2.0 Status: DRAFT

Who pays when startup employees keep their equity?

JD Maturen, 2016/07/05, San Francisco, CA

As has been much discussed, stock options as used today are not a practical or reliable way of compensating employees of fast growing startups. With an often high strike price, a large tax burden on execution due to AMT, and a 90 day execution window after leaving the company many share options are left unexecuted.

There have been a variety of proposed modifications to how equity is distributed to address these issues for individual employees. However, there hasn't been much discussion of how these modifications will change overall ownership dynamics of startups. In this post we'll dive into the situation as it stands today where there is very near 100% equity loss when employees leave companies pre-exit and then we'll look at what would happen if there were instead a 0% loss rate.

What we'll see is that employees gain nearly 3-fold, while both founders and investors – particularly early investors – get dilute

	#!/bin/bash

	# An enhancement to the "python" executable that automatically launches you into the python debugger on error.
	#
	# Use it like you would the "python" executable, for example:
	# $ trypy somefile.py
	# or
	# $ trypy somefile.py arg1 arg2
	#
	# EXAMPLE:


	{-# LANGUAGE OverloadedStrings #-}
	{-# LANGUAGE QuasiQuotes #-}

	module EkgJsonParser where

	import Data.Aeson
	import Data.Aeson.Types
	import Control.Monad
	import Data.ByteString.Lazy

	# unregister broken GHC packages. Run this a few times to resolve
	# dependency rot in installed packages. ghc-pkg-clean -f
	# cabal/dev/packages*.conf also works.
	function ghc-pkg-clean() {
	for p in `ghc-pkg check $* 2>&1 \| grep problems \| awk '{print $6}' \| sed -e 's/:$//'`
	do
	echo unregistering $p; ghc-pkg $* unregister $p
	done
	}

	module Main where
	import Criterion.Main
	import qualified Data.List.Ordered as O
	import qualified Data.List as L
	import qualified Data.Set as S
	import qualified Data.IntSet as IS

	repeatsTail, orderedIntersect, listIntersect, setIntersect :: [Integer] -> [Integer] -> [Integer] -> [Integer]
	intsetIntersect :: [Int] -> [Int] -> [Int] -> [Int]

	#make R with GCC
	./configure CC="gcc-mp-4.7 -arch x86_64" CXX="gcc-mp-4.7 -arch x86_64" F77="gfortran-mp-4.7 -arch x86_64" FC="gfortran-mp-4.7 -arch x86_64" OBJC="gcc-mp-4.7 -arch x86_64" --x-includes=/usr/X11/include/ --x-libraries=/usr/X11/lib/ --with-blas='-framework Accelerate' --with-lapack --without-aqua CPPFLAGS="-D__ACCELERATE__" --prefix=/Users/admin1/lib/R --enable-BLAS-shlib


	#make R with Clang
	./configure CC="clang -arch x86_64" CXX="clang -arch x86_64" F77="gfortran -arch x86_64" FC="gfortran -arch x86_64" OBJC="clang -arch x86_64" --x-includes=/usr/X11/include/ --x-libraries=/usr/X11/lib/ --with-blas='-framework Accelerate' --with-lapack --without-aqua CPPFLAGS="-D__ACCELERATE__" --prefix=/Users/admin1/libclang34 --enable-BLAS-shlib

	-- \| Internal implementation of the @io-streams@ library, intended for library
	-- writers
	--
	-- Library users should use the interface provided by "System.IO.Streams"

	{-# LANGUAGE BangPatterns #-}
	{-# LANGUAGE DeriveDataTypeable #-}
	{-# LANGUAGE FlexibleInstances #-}
	{-# LANGUAGE GeneralizedNewtypeDeriving #-}
	{-# LANGUAGE OverloadedStrings #-}

	#include <iostream>
	#include <sstream>
	#include <string>
	#include <random>

	namespace sftrabbit {

	template <typename RealType = double>
	class beta_distribution
	{

	## -- mode: make; tab-width: 8; --
	##
	## Simple Makefile
	##
	## From RInside examples
	## TODO:
	## proper configure for non-Debian file locations, [ Done ]
	## allow RHOME to be set for non-default R etc

	## comment this out if you need a different version of R,