Best Practices for Option Grants by Venture-Backed Companies

Best Practices for Option Grants by Venture-Backed Companies

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Employee option grants have long been a staple of the recruitment and compensation of employees at venture-backed companies. However, changes in the regulatory environment in recent years have made the option grant process more complicated and often more perilous than it has been in the past. There are a number of tax-, securities- and governance-related issues that companies must be mindful of when granting employee options.

A recent article written by WilmerHale Partners Patrick J. Rondeau, Kimberly B. Wethly and R. Scott Kilgore reviews the primary regulatory issues that venture-backed companies should consider when granting options and suggests some best practices for companies to follow in the option grant process.

This article was published by Bloomberg Finance L.P. in the Vol. 3, No. 28 edition of the Bloomberg Law Reports. To read the full text of this article, click here.