Article · 15 min read

Rewarding Talent: Option Grant Allocation Considerations and Benchmarks

Index Ventures Free Intermediate

Founders always ask two questions: how big should the pool be, and how much does one hire get. This answers both with hard numbers instead of vibes: a seed pool of roughly 10 to 15% of fully diluted equity, and a per-role grant table (senior engineer around 1.0%, mid-level 0.45%, junior 0.15%) so you benchmark each offer by seniority instead of guessing.

  • A seed-stage option pool typically runs 10 to 15% of fully diluted equity, which is the same carve-out investors ask you to create at a priced round
  • Individual grants scale by role and seniority: senior engineers land near 1.0% of FDE, mid-level around 0.45%, juniors near 0.15%
  • A typical seed team of ten adds up to roughly 5% of the fully diluted equity in grants, a useful sanity check on your total pool
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The question it answers

  1. How do I set up an ESOP pool and grant equity to my early employees legally?

Read with it

  1. Once you have negotiated the pool size, this is the guide that stops the pool from becoming a tax trap for the very employees... Treelife Article · 25 min read ESOP Taxation in India: Complete Guide for Founders and Startups Treelife
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