| Topic Name: |
Stock option plans |
| Message Name: |
it's up to the $ |
| Date Posted: |
04/21/2001 |
| In Reply To: |
I work for a direct equity fund investing in African companies. We have agreed with one of our portfolio companies, a satellite telecom firm, to provide a stock option plan for its employees. Does anyone know a range of a company's stock that is made available to employees in such plans? 5 - 10% seems right to me. Is such a plan typically straight compensation or is it tied to company/individual performance? |
| Message: |
5% to 10% is probably a bit on the low side. It is not unusual to see option pools up to 20%, and that's where we ususally draw the line. Best always to negotate this PRIOR to making your investment. Awarding of the option pool usually has both company and individual performance goals. We weight individual performance more heavily and use the 401K/profit sharing to reward company-wide performance.
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