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Board of Director Option Allocation

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

Answers

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

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.

Anonymous
(CFO/Board Advisor) |

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.

Brett Bennett, CPA
Title: Head of Finance
Company: Bugcrowd Inc
(Head of Finance, Bugcrowd Inc) |

Thank you

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