| WEBVTT | |
| 00:00.000 --> 00:11.000 | |
| As we discussed in the ATEM 6D framework discussion, you could waste your stock options based on tenure or based on performance. | |
| 00:11.000 --> 00:20.000 | |
| Wasting based on tenure simply means that the options will waste if the employee continues to be an employee on the date of Westing. | |
| 00:21.000 --> 00:31.000 | |
| Wasting based on performance, however, specifies additional conditions beyond tenure that the employee needs to satisfy before the options can waste. | |
| 00:32.000 --> 00:35.000 | |
| tenure-wasting is easier to understand and implement. | |
| 00:35.000 --> 00:40.000 | |
| Performance-wasting is stricter and hence needs more discipline to implement. | |
| 00:41.000 --> 00:50.000 | |
| But if you believe your vision or the culture you wish to create demands it, then you must do it. | |
| 00:50.000 --> 01:00.000 | |
| You can use performance-wasting very effectively in certain cases, but you also must be extra careful when you grant options at Western performance. | |
| 01:00.000 --> 01:05.000 | |
| Let us look at an example of where performance-wasting can be useful. | |