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