How many options will my employees be granted?

Offtoa will divide the initial stock option grant you allocate to an employee by the economic value of one stock option (which you defined on the financing/investment/options assumptions screen) to determine how many stock options they are granted. For example, if you offer two employees initial stock option grants with economic values of, say, $100,000 and $150,000, respectively, and you set the economic value of one stock option to, say, $.50, then Offtoa will grant 200,000 and 300,000 options to the two employees, respectively. We recommend that you distribute your stock option grants to your employees on the personnel screen fairly, i.e., so employees receive the “right” amount of options relative to each other. Then visit the cap table financial report to see how many total options were granted. If too many, then increase the economic value of one stock option on the investment assumptions screen; this will not change the relative distribution of options among your employees. If too few, then decrease the economic value of one stock option on the investment assumptions screen; this will not change the relative distribution of options among your employees. You should have to make this adjustment just once.

Related Questions:

What is the difference between an Incentive Stock Option (ISO) and a Nonstatutory Stock Option (NSO)?

How do I grant options to employees?


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