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The third dimension is how many.

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The how many dimension has two parts to it.

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How many options per employee and how many options in total as in the total stock options

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pool.

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How many options should you grant per employee?

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What number is the right number and how do you decide that?

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Well, here we use the principle of attractiveness.

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In a certain growth rate, what amount would be an attractive amount for an employee at

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a particular role criticality?

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We will discuss this in detail when we do the numbers, but broadly what you need to ensure

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is that the number of options must be such that they are attractive to the recipient.

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The second part is how many overall meaning what must be the total stock options pool

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of the company and out of that how many do you give out today and how many do you reserve

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for the future.

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Here you might have your own restrictions or those placed by your investors in some cases.

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Now look at the interplay between this dimension and the last one.

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You have a certain overall limit that you cannot exceed.

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Within that limit, you need to ensure that whoever gets stock options should get a number

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that is attractive enough for that role.

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If you are ever in a situation where the stock options pool is too small and you cannot cover

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all your people adequately, then consider reducing your coverage.

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You can try reducing the individual number of stock options so you try and cover as many

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people but beyond a point it does not make sense to give them out to a large number of

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people.

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Because that might mean giving out peanuts to everyone and it may not motivate anyone

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at all.

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Attractiveness also depends significantly on your growth rate over the next few years

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and we will see how when we do the numbers.

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As a founder, you need to balance these forces and customize your scheme so that it is right

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for you.