Key takeaways of a Stock Options Plan

Mar 21, 2023

  • Stock Options Plans are offered by companies to their employees, advisors or consultants as equity compensation plans.


  • There’s a difference between options and shares. Options gives the participant the right to buy shares in the future at a pre-agreed price.


  • Share options can be an effective incentive to attract and retain talented employees. They can also motivate your team and boost productivity.


  • Shares don’t become available right away. Instead, the options go through a vesting period and become available over time.


  • There are different types of vesting: time and performance based.


The best timing for you to set up your options plan is before a funding round and/or before you hire new employees when you’re about to scale.


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