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0 5760 The third dimension is how many.
5760 9120 The how many dimension has two parts to it.
9120 15280 How many options per employee and how many options in total as in the total stock options
15280 17600 pool.
17600 20760 How many options should you grant per employee?
20760 24240 What number is the right number and how do you decide that?
24240 28880 Well, here we use the principle of attractiveness.
28880 34920 In a certain growth rate, what amount would be an attractive amount for an employee at
34920 38400 a particular role criticality?
38400 43600 We will discuss this in detail when we do the numbers, but broadly what you need to ensure
43600 51040 is that the number of options must be such that they are attractive to the recipient.
51040 57440 The second part is how many overall meaning what must be the total stock options pool
57440 62840 of the company and out of that how many do you give out today and how many do you reserve
62840 64960 for the future.
64960 72040 Here you might have your own restrictions or those placed by your investors in some cases.
72040 76720 Now look at the interplay between this dimension and the last one.
76720 81440 You have a certain overall limit that you cannot exceed.
81440 86840 Within that limit, you need to ensure that whoever gets stock options should get a number
86840 90400 that is attractive enough for that role.
90400 95400 If you are ever in a situation where the stock options pool is too small and you cannot cover
95400 101200 all your people adequately, then consider reducing your coverage.
101200 106080 You can try reducing the individual number of stock options so you try and cover as many
106080 111280 people but beyond a point it does not make sense to give them out to a large number of
111280 112760 people.
112760 118360 Because that might mean giving out peanuts to everyone and it may not motivate anyone
118360 120720 at all.
120720 125960 Attractiveness also depends significantly on your growth rate over the next few years
125960 129440 and we will see how when we do the numbers.
129440 135520 As a founder, you need to balance these forces and customize your scheme so that it is right
135520 136080 for you.
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