How Much Equity Is Commonly Set Aside for Employee Options

question 37

Multiple Choice

How much equity is commonly set aside for employee options?

• A) 15-20%
• B) 20-25%
• C) 25-30%
• D) 35-40%
• E) 45-50%

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Definitions:

Corporation Ratifies

An action whereby a corporation formally confirms or approves an agreement or decision made on its behalf.

Prior To Incorporation

Describes actions or agreements made before the formal establishment or registration of a corporation.

Directors

Individuals elected or appointed to oversee the strategic direction and management of an organization, ensuring it meets its statutory obligations and operates in the best interest of its stakeholders.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money or property, such as between trustees and beneficiaries.