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0 8000 The next dimension to consider is the coverage of your stock options strategy.
8000 10000 Who should be granted stock options?
10000 15040 Should it be granted to everyone or only to a select number of people?
15040 18000 There are multiple perspectives to consider here.
18000 24240 First, based on your values and vision, what is the kind of culture you think would be
24240 27160 right for your company?
27160 32160 Does that culture envision everyone receiving stock options or only a few people?
32160 38160 Second, what is your expectation from the team members who are granted stock options?
38160 43160 Do you expect them to behave differently once they become option holders?
43160 48160 In that case, you would need to consider if the recipients have the maturity to appreciate
48160 54160 stock options and the responsibility that they might convey.
54160 56160 Everyone understands what they mean.
56160 63160 If you do well, I will become rich, but understanding is not the same as appreciation.
63160 71160 For instance, you might want to consider if the recipients have the ability to take a big picture view of the organization
71160 77160 or are they too junior or inexperienced to do that at the moment.
77160 83160 Third, where do they sit in your compensation framework for the recipients?
83160 85160 Consider this.
85160 87160 You pay a salary to someone.
87160 93160 By virtue of receiving that salary, they are expected to contribute to a certain extent
93160 96160 or bring about a certain growth rate.
96160 102160 Salary is usually paid with certain expectations of performance or delivery.
102160 110160 If stock options sit over and above the cash compensation, what do you expect the recipients to deliver
110160 114160 beyond what they are to deliver for their salary?
114160 121160 Or do stock options fill in for the reduction they agreed to take on their salary?
121160 128160 Fourth, while you might be granting stock options with an expectation to motivate the recipient,
128160 132160 does the recipient view these options as motivating?
132160 139160 Sometimes certain people are better motivated through immediate cash rather than a distant long-term reward.
140160 149160 Fifth, do you have a sufficient stock option spool to grant an adequate number of options to all the recipients?
149160 156160 This is something we will cover in the next dimension, but as I mentioned, a few dimensions overlap
156160 159160 and certain forces may act against each other.
159160 165160 You need to consider these perspectives, balance them according to your values and vision,
165160 168160 and take your decision accordingly.
168160 173160 So please consider them one at a time when you design your policy.
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