We are an early stage company that just completed our A round of financing. We are adding a non investor to our Board. I am wondering if anyone knows the standard for issuing this individual options in regards to the amount, vesting period and cliff? Thank you
Board of Director Option Allocation
Answers
Depending on how early stage you are, it is usually in the 0.5-1%. Visit the Venturehack Options Pool shuffle writeup. http://venturehacks.com/articles/option-pool-shuffle. You can vest it and cliff it any way you want but would be good if it is granted or set up the same as everyone else.
Also, keep in mind that non-employee Board of Director options will be Non-qualified (NQ's) options, NOT Incentive Stock Options (ISO's) under the Internal Revenue Code. As such, you may want to consider issuing restricted stock instead.
Thank you
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