Concept · Fundraising and equity

Option pool

Also called: employee option pool, equity pool, stock option pool, employee pool, equity incentive plan, stock plan

A block of shares a company sets aside to grant to future employees, advisors and contractors, usually as stock options.

For example: A company with 9 million shares creates a pool of 1 million more for future hires. The pool is then 10 percent of the company, and every earlier owner's percentage shrinks to make room.

Connects to 5

• Stock options Concept
• Dilution Concept
• Cap table Concept
• Advisor shares Concept
• 409A valuation Concept

This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.