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One thing I've always been curious about: Why not just have a large option pool, with the condition that in a liquidity event all unused equity in the option po
by mnutt 15y ago
One thing I've always been curious about: Why not just have a large option pool, with the condition that in a liquidity event all unused equity in the option pool goes back to the common stockholders?
- notbitter 15y agoBecause the common stockholders don't have a seat at the table. Instead, when the company decides to sell, the execs fully dilute the common by granting themselves the remainder of the pool (with acceleration on change of control, of course).