Option pool's principle of option allocation.

Generally, start-up companies will reserve an incentive equity pool with a certain equity ratio for the implementation of equity incentives. The equity in the early equity pool is usually transferred by the founding shareholders, and the establishment of the equity holding platform is completed before the company implements the equity incentive. If the shareholding ratio of the founding shareholders is low, you can also choose to set up an incentive equity pool by private placement and equal dilution of all shareholders.

What percentage of option pool is reserved for employees? This problem corresponds to the fixed amount in the design of equity incentive scheme. Fixed total, that is, to determine the proportion of the number of incentive shares used for equity incentive to the company's total share capital.

In terms of the total amount, the total amount of incentive shares reserved by companies of different development stages and sizes is different, but the total amount of incentive shares is generally strictly limited, usually between 10%- 15%.