First of all, the first question faced by the founders and the management team is why the company needs to start employee equity incentives as part of employee compensation and benefits to restrain core employees and reduce initial operating costs, or there are other needs, such as providing incentive tools for non-employees such as consultants, directors, employees of affiliated companies and cooperative suppliers according to the company's development strategy (optional for listed companies).
Secondly, how to reserve employee option pool? Are all or some old shareholders selling some self-sustaining old shares at low prices or even free of charge, or are all shareholders agreeing to issue new shares? Which scheme is more suitable for the current situation of your company, and how much is this issue and reserve?
Third, who will manage the employee option plan? Including the management of deciding who to grant and how many options to grant, or the tax payment when the options are cashed (especially important for the enterprises to be listed), or the subsequent changes such as cancellation of grant or share repurchase caused by employees' resignation, and the arrangement of expanding the decision-making mechanism in option pool.
Finally, if option pool is located at home or abroad, it should be held by individuals or platforms, whether the register of shareholders will be changed immediately when exercising rights, whether there will be the possibility of overseas restructuring in subsequent financing or capitalization operations, and so on.