What Startups need to know about Employee Stock Options


Employee motivation, remuneration and, ultimately, retention are common areas of conversation for Start-up founders and business owners alike.

While stock options do not exist for the sole reason of motivating employees or founders, it has become an incentivising instrument. This is done via the employee stock option plan.

What is a Stock Option?

It is an agreement (contract) between the parties that gives an individual the right, but not obligation, to buy or sell stock at an agreed price within a specified time period.


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