id	author	title	date	pages	extension	mime	words	sentence	flesch	summary	cache	txt
cblr-5117	Aran, Yifat	Making Disclosure Work for Start-Up Employees	2019	97	.pdf	application/pdf	35033	1259	43	Even though start-ups’ reliance on broad-based equity compensation is not a new phenomenon, the legal literature on this subject is just starting to emerge.318 The scarcity of academic legal discussion regarding employee equity compensation is especially puzzling given corporate law’s obsession with executive equity compensation.319 This Article lays the foundations for a securities regulation approach to human capital investments by start-up employees. 87 See Aran, supra note 4, at 1262. 4_2019.3_ARAN (DO NOT DELETE) 1/8/2020 4:44 PM No. 3:867] MAKING DISCLOSURE WORK 889 Silicon Valley and elsewhere.88 As part of this process, the new high-tech industry experienced a pressing need to adopt employee equity compensation plans as a means to attract and, even more so, retain skilled workers.89 Since the mid- 1980s, scholars, industry representatives, and attorneys have called on the SEC to create a special exemption that would allow start-ups to offer equity compensation to prospective employees, thereby enabling these emerging businesses to compete for talent against better-established public firms.90 At the forefront of promoting these initiatives was the SEC Government-Business Forum on Small Business Capital Formation (hereinafter Forum on Small Business) that the SEC established in 1982 pursuant to the Small Business Investment Incentive Act of 1980.91 Starting in 1985, this forum called for easing the investor protection guarantees of the Securities Act in cases where the nature of a securities transaction is essentially compensatory.92 88 See, e.g., ANNALEE SAXENIAN, REGIONAL ADVANTAGE: CULTURE AND COMPETITION IN SILICON VALLEY AND ROUTE 128, 108–09 (1994) (discussing the proliferation of electronics firms in Silicon Valley and Route 128 in the 1980s); Matt Weinberger, 36 Photos Showing How Silicon Valley Went from Prune Orchards to the Center of the Tech World, BUS.	cache/cblr-5117.pdf	txt/cblr-5117.txt