Imagine being an early employee of a startup and being granted stock options as part of your compensation package. A few years later the company goes public and your stock options are worth several million dollars. This is a story that has been repeated many times the start-up world.
Stock options provide a way for officers, directors, employees and consultants to share in the upside in the equity value of a company. Companies issue stock options to attract and retain talent, and to reward these people with upside in the company’s value. Investors in start-ups recognize the value of stock option plans, and make sure the company will have a suitable stock option plan in place to attract and retain top-level talent.
This post provides an overview of stock option plans.
Stock options provide a way for officers, directors, employees and consultants to share in the upside in the equity value of a company. Companies issue stock options to attract and retain talent, and to reward these people with upside in the company’s value. Investors in start-ups recognize the value of stock option plans, and make sure the company will have a suitable stock option plan in place to attract and retain top-level talent.
This post provides an overview of stock option plans.
