Understand stock option plans

Understand pools, offers, participants, vesting, and exercises.

Last reviewed: 2026-08-25

How the plan is organized

• Pool — the option capacity reserved for one plan or program.
• Offer — a set of terms applied to one or more participants.
• Participant — a beneficiary whose options follow the offer and vesting terms.
• Exercise — the controlled event through which eligible vested options are acted upon.

Options are not automatically issued shares

An option may vest without becoming issued equity. Review the plan, offer, participant status, exercise conditions, and issuance result separately.

Before configuring a plan

Confirm the approved pool size, dilution treatment, eligible share class, vesting policy, price, premium, and termination rules.