e2c-how/content/legal-snippets/airbnb-compensatory.md

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title	description	tags	external_url	files_media
Workers Capital Rider	A rider for investment terms that helps ensure a worker-friendly outcome, developed by Eduardo Cabral of Triple Beam Advisors.	cooperative investment	https://www.triplebeamadvisors.com/	../../Exit%20to%20Community%20Stories%20&%20Strategies%202ee6f9c491af45648511f5df33c5cfc5/s71818-4403356-175575.pdf

1. Reserve X% of the total financing round (or $Xk) for investors committed to:
   1. A capped return model, targeting no more than X% IRR or a fixed MOIC, with excess gains recycled into employee equity pools or retained for other company purposes; and/or
   2. Aligned exit incentives whereby upon a Corporate Transaction (or other to-be-agreed milestones), investors recoup any gain on their invested capital only if employee ownership pools or other forms of incentive equity (excluding those granted to the founders) also receive at least 50% of the full liquidity they are entitled to under the waterfall provisions (or otherwise distributions will be prorated as needed to ensure an equitable distribution to the employees).
2. Prioritize Shared-Risk & Embedded Shared-Outcome Structures: Collaborate with Investors who embrace frameworks inspired by solidarity economics and cooperative finance, such as:
   1. Profit-sharing: Returns tied to enterprise success, not fixed interest;
   2. Worker-Investor Covenants: Mechanisms (e.g., side agreements, SAFE-like instruments) to ensure capital providers share both upside and downside risk with labor stakeholders.
   3. Worker Friendly Governance: Optionality for economic rebalancing (e.g., redistributive equity pools triggered at exit).
   4. Vesting-Adjusted Dividends: Investor dividends accrue but only vest upon equivalent employee profit-sharing milestones.
3. Transparency & Accountability:
   1. Report annually on progress toward sourcing solidarity-aligned capital, including challenges faced.