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.
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.