First, let's introduce what option pool is. Option pool is a fund pool specially set up by the company to encourage employees to issue options. Option is a right that enables employees to buy company shares at a predetermined price at a certain time in the future. Generally speaking, the price of options will be much lower than the market price, because options are issued as a reward for the company to recognize employees' work.
Secondly, what are the benefits of reserving option pool for the company? First of all, reserving option pool can help companies attract outstanding talents. If a company does not have enough incentives, it is likely to lose some outstanding talents who could have joined the company. These talents usually go to competitors' companies or start their own companies. If the company can provide these talents with option incentives, then these talents may be more willing to join the company and contribute to the development of the company.
Secondly, retaining option pool can also help the company maintain high staff morale. Generally speaking, employees want to get some rewards in recognition of their work and efforts to the company. If the company does not have enough incentives, the enthusiasm and creativity of employees may decline. And if the company can provide employees with option incentives, then employees may be more motivated and enthusiastic to work for the company.
Finally, reserving option pool can also help the company attract investors' attention. If a company can show investors that it has enough incentives, then investors may be more willing to invest money to support the company's development. This will bring more investment opportunities for the company, while improving the company's market recognition and reputation.
In a word, it is very important for the company to reserve option pool. By reserving option pool, the company can not only attract outstanding talents and maintain high staff morale, but also attract investors' attention. Therefore, every manager should seriously consider and make rational use of option pool to strive for more opportunities and development space for the company.