Close X

Option Pool

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.

Contact us Today

The Nick Yocca Law Firm is committed to answering your questions about business law and corporate compliance matters in Orange County.

We'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment.