In this AlphaTakes video, Meechie Pietruczak discusses calculating the number of shares in an emerging technology company’s option pool.
Here are the key takeaways from this video:
- Emerging technology companies usually create stock option pools to compensate and incentivize employees, directors, consultants and other independent contractors.
- The size of the option pool is typically calculated as a percentage of all capital stock, which is often in the range of 10 to 20%.
- The size of the option pool may have a significant impact on the price per share paid by an investor.