Definition
The Share Option Pool is a portion of a startup`s equity reserved for future issuance to employees, advisors, and consultants as part of their compensation. This pool is designed to align the interests of the team with the growth of the company.
Usage and Context
The share option pool sets aside equity for future issuance to employees, aligning their goals with the company`s growth.
Frequently asked questions
What is a share option pool? A share option pool is a portion of company shares reserved to be granted to employees as part of their compensation.

What is the option pool in a term sheet? The option pool is a set amount of company equity reserved to grant to future employees, which helps attract and retain talent.

What is an option pool top up? An option pool top-up is increasing the number of shares set aside for employee stock options to allow for future grants.
Related Software
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Benefits
The share option pool reserves a portion of equity for future issuance to employees, aligning their interests with the company`s growth.
Conclusion
The share option pool sets aside equity for future employee compensation, aligning their goals with the company’s growth.
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