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The Greatest Stock Option Plan You’ll Probably Never See

If you’re running a company — a real one or a startup — you’ll want to remember the story of Fred Futile, CEO of Stagnant, Inc. The compensation committee of Stagnant, Inc. saw fit to award Fred stock options equal to 1% of the shares then outstanding.  This was intended to give Fred an owner-like […]

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Are Startup Stock Options a Form of Fraud?

Wikipedia’s page on securities fraud says, “Offers of risky investment opportunities to unsophisticated investors who are unable to evaluate risk adequately and cannot afford loss of capital is a central problem.” Let’s go down the line: Are Stock Options Risky? Imagine you were given options with a strike price at 25 cents per share, and […]

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