This Guide gives you an overview of the steps needed to create and run an employee equity aka stock option plan.
To run an employee stock option plan, a company needs to
- create a plan or program with terms and conditions
- find a platform or tool to manage the plan
- communicate the value and risks to employees
- run the plan
- maintain compliance with regulations.
If the company is successful, there will be the opportunity to trade for example
- a secondary sale or
- a sale within the initial public offering of the company’s shares (IPO)
Creating a stock option plan involves a bit of planning, designing as well as understanding legal and tax nuances. Each step is described in further detail in this Guide.