Whenever I’ve been involved in reviewing a Term Sheet with entrepreneurs, the how do option pools work topic needs to be addressed. Employee Stock Option “ESOP” is an allocation of shares, usually “common stocks”, that are reserved by early-stage founders for their employees. It is used as a means for retention and to attract talent, especially if the company is not able to pay market-competitive salaries.
Option Pool (Basics)
Option Pool (Basics)
Option Pool (Basics)
Whenever I’ve been involved in reviewing a Term Sheet with entrepreneurs, the how do option pools work topic needs to be addressed. Employee Stock Option “ESOP” is an allocation of shares, usually “common stocks”, that are reserved by early-stage founders for their employees. It is used as a means for retention and to attract talent, especially if the company is not able to pay market-competitive salaries.