4 ms·
Short answer - there is no expectation for this except as a true up to avoid dilution (expectation... not requirement). My mildly informed longer form answer is
by powerfulcurve 9y ago
Short answer - there is no expectation for this except as a true up to avoid dilution (expectation... not requirement). My mildly informed longer form answer is yes, practically speaking, a Company can issue incremental options at its management's discretion (with required grant approvals from the board); however, experience tells me that while this does occur, it occurs rarely, so it is not an expectation. Incremental grants I have been exposed to are used as true-ups to net out dilution, which I would characterize as an "expectation". Options are used for retention, to incent high performance, and to attract talent. A Company doesn't have unlimited options to hand out and has to allocate grants carefully.