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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. | |