04.4 Competing For & Compensating Talent A positive effect of awareness-building campaigns, led in part by strong arguments from Europe’s leading VCs, is evident in a reported increase in employee awareness of stock A positive effect of awareness-building campaigns, led in part by strong arguments from Europe's leading VCs, is options as a form of compensation. This increased awareness is most prevalent in larger evident in a reported increase in employee awareness of stock options as a form of compensation. This increased companies of 100 employees or more. awareness is most prevalent in larger companies of 100 employees or more. Founders' view on change in employees awareness of stock options as form of <=10 compensation by company size LEGEND Increase No change 11-100 Decrease 100+ 0 10 20 30 40 50 60 70 80 90 100 % of respondents Note: Respondents stating 'Not able to comment' ïltered out. Source: Founder respondents only. A majority of European founders of larger companies STOCK OPTION AWARENESS of 100+ employees report an increase in employee awareness of stock options of founders of European private tech % start-up or scale-ups with more than 100 56 employees report an increase in employee awareness of stock options as a form of compensation As Europe’s tech ecosystem continues to evolve and mature, it is helping to drive greater As Europe's tech ecosystem continues to evolve and mature, it is helping to drive greater access to talent that has access to talent that has built significant and relevant prior experience at other startups or built signiïcant and relevant prior experience at other startups or scaleups. This is especially true for the region's scaleups. This is especially true for the region’s more scaled startups with 55% of founders more scaled startups with 55% of founders of companies with more than 100 employees reporting an increase in of companies with more than 100 employees reporting an increase in this talent trend. this talent trend. % change in founders' view on change in candidates with signiïcant prior <=10 startup/scaleup experience joining the industry by company size (past 12m) LEGEND Increase 11-100 No change Decrease 100+ 0 10 20 30 40 50 60 70 80 90 100 % of respondents Note: Respondents stating 'Not able to comment' ïltered out. Source: Founder respondents only. & 56 In Partnership with www.thestateofeuropeantech.com