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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. | |