Option Pool

Term Main definition
Option Pool

The number of shares of common stock (or equity interests) that are set aside for issuance upon the exercise of options or other equity-based incentives, to be granted by the board of directors in the future over a period of time (usually up to 10 years) to management and key employees (and perhaps others). The size of the option pool varies (from 10% to 25%), but it averages around 15% of fully diluted shares.

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