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A Different Approach to Refreshing Stock Option Grants

I’ve never really understood why the majority of stock option refresh grants are stacked grants mid-way through the granting process.

Every year in December and January I go through the same cycle for all the boards I’m on. It’s the annual bonus, next year bonus plan, option grant refresh cycle. For many management teams, especially in rapidly growing, or mature companies, it’s an important part of their existence as culturally we’ve oriented compensation, bonuses, and future compensation around an annual cycle.

I embrace this – my goal is to help these entrepreneurs and management teams win. I know compensation is an important part of the feedback / reward loop. While I’ve occasionally had conflict over compensation, and I’ve had a few CEOs I work with tell me they feel like it’s an uncomfortable discussion, my own perception of my behavior is that I’m a softy. If things are going well, I am supportive of anything that’s reasonable. And, having thousands of data points over the past 17 years, I’ve got a good calibration on reasonable.

Brad Feld

Full Story: http://www.feld.com/wp/archives/2013/01/a-different-approach-to-refreshing-stock-option-grants.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+FeldThoughts+%28Feld+Thoughts%29

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