An ESOP (Employee Stock Option Plan) is essential for attracting top talent when you can't match big company salaries. Standard pool: 10-15% of fully diluted shares. Options vest over 4 years with 1-year cliff. Strike price = fair market value at grant date.
Key Takeaways
- 10-15% pool is standard for early-stage startups.
- VP/C-level: 1-2%. Senior: 0.1-0.25%. Junior: <0.05%.
- 4-year vesting + 1-year cliff is the default.
- Double trigger acceleration is fairest for both sides.