Employee Option Pool

Definitions

1. A reserved set of company shares or options intended for current and future employees, usually to support hiring and retention. Option-pool size is a major point of negotiation in financing rounds because it affects founder dilution.

   In plain English: A set of shares reserved for granting equity to employees.

   Example: "The investor wanted the employee option pool topped up before closing the round."

Related Terms

• Vesting
• Cap Table
• Dilution
• Cliff
• Double Trigger
• Employee Stock Option
• Equity Dilution
• Option Pool