There is alot written on options for employees, and generally they can work - but there are also potential issues.
One problem is when the options go deep out of the money / or the Company cannot reach IPO to give the options value. I often call them Jacques Cousteau Options because they are so deep underwater they will never see the surface.
The problem with this situation is that employees who hold such options will often just leave. They have little incentive to stay. So if you have an option plan, and it is not working for whatever reason, don't assume that it does not need to be amended in order to ensure employees don't leave. It will need attention.
About Me
- Nicholas Assef
- Founder and Executive Chairman of independent Investment Bank Lincoln Crowne & Company. Has built the business from the ground up, expanding from Australia to have operating centres across the nations of Vietnam, Singapore, Malaysia, India and most recently the Philippines.
