The Lack of Options for (Startup Employees’) Options

7/12/2016

This article explores the concept of options timing in the context of startup equity. It discusses the common practice of granting stock options to employees as a form of compensation and incentive in startups. The article explains that the timing of when these options are granted can have a significant impact on their value. It delves into different scenarios, such as early employees receiving options before a company experiences substantial growth versus employees joining later in the company's lifecycle. The article also touches on the concept of "cliff vesting" and the potential risks and benefits associated with it. Overall, it provides insights into the importance of considering options timing in startup equity and how it can affect employee motivation and investment outcomes.

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