Stock Options 101

Comp & Equity
Written By Kent Goldman
 

WRITTEN BY: SUBRATA SAHA
STARTUP LEGAL STUFF BLOG


Subrata Saha is a Texas based lawyer who works with startups and early stage companies. He has put together a thorough explanation of stock options: what they are, who gets them, how they work, etc.

We’ve included his framework below so you know what to expect, but you can read his full breakdown here.

I. Stock options basics

A. What are stock options?

B. Why use stock options?

C. Who gets stock options?

D. How do stock options work?

(i) Granting of the option

(ii) Stock option timing

  • Vesting

  • Other timing issues

II. Other stock option issues

A. When should stock options be issued?

B. Stock option pool

C. Giving stock flat-out vs stock options

D. The two types of stock options and why it matters

III. Stock Options 101 summary and more reading

Originally Published:
2017, Stock Options 101, Subrara Saha- Startup Legal Stuff

 
Kent Goldman
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Early Stage Comp & Equity Guide