The number of shares of Common Stock specified in the corporate charter that can be sold to employees, officers, and directors at low prices without triggering the Price Anti-dilution Protection of the Preferred Stock. 10-20% of the fully diluted shares are reasonably typical. However, the Option Pool size usually depends on the number of shares estimated to be necessary to grant to employees to attract a team capable of achieving the goals of the company’s business plan. This varies from one company to another. Option Pool shares are usually considered to be outstanding shares when calculating the company’s valuation.
The number of shares of Common Stock specified in the corporate charter that can be sold to employees, officers, and directors at low prices without triggering the Price Anti-dilution Protection of the Preferred Stock. 10-20% of the fully diluted shares are reasonably typical. However, the Option Pool size usually depends on the number of shares estimated to be necessary to grant to employees to attract a team capable of achieving the goals of the company’s business plan. This varies from one company to another. Option Pool shares are usually considered to be outstanding shares when calculating the company’s valuation.
