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Option pool

Also called: employee pool, ESOP pool, equity pool

In one line

The block of shares a company sets aside to grant to employees as options or RSUs.

In plain English

Companies reserve a chunk of equity — often 10–20% — to hand out to the team over time. Your grant comes out of this pool.

If you were explaining it to a 5-year-old

It's the jar of chocolate the grown-ups keep aside just to reward the kids who help. Your squares come from that jar.

Why it matters when you sell

The pool is part of the fully-diluted count, so it dilutes everyone — and unallocated pool shares affect how your percentage is calculated.

Related terms

Put it to use

How ESOP allocation works

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Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.