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SWB
OGeneralUpdated 2 Nov 2026

Option grant

Award of stock options to employees as part of compensation or incentive programs.

Definition

Option grant is the award of stock options to employees as part of compensation or incentive programs. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.

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In the room

How the word shows up in a real conversation.

In a Monday review, someone writes Option grant on the board and restates it: “Award of stock options to employees as part of compensation or incentive programs.” The next move is a test, a cut, or a double-down — not another debate about the word.

Common mistake

Using Option grant as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.

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