The Option Pool is shares of stock reserved for future issuance to employees and consultants as part of their compensation.

What is an option pool? An option pool is a reserve of shares set aside by a company to be granted to employees, consultants, and advisors as part of their compensation.

What happens to employee option pool in acquisition? In an acquisition, the employee option pool may be converted into options for the acquiring company`s stock, cashed out, or otherwise adjusted based on the terms of the acquisition agreement.

Is an option pool the same as an ESOP? An option pool is not exactly the same as an ESOP (Employee Stock Ownership Plan), although both involve providing employees with company stock. An option pool typically refers to reserved shares for future grants, while an ESOP is a specific plan that offers stock ownership as part of retirement benefits.

-

An option pool helps attract and retain talent, aligns employee interests with company goals, and provides potential financial rewards for employees as the company grows.

The Option Pool is a reserve of shares for future issuance to employees and consultants, aiding in talent attraction and retention through potential ownership stakes.