Incentive Stock Options May Not Be the Incentive Employers Want

For most high-impact businesses, equity incentive programs for employees are a central component of the total compensation plan. Giving employees a piece of the upside builds esprit de corps and compensates for some of the risk employees take when they sign on with a high-risk startup.  But coming up with the exercise price can be burdensome, plus most option agreements provide that if the vested options are not exercised within 90 days of the day the holder leaves employment they expire. Are options enough of an incentive?

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