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What percentage of a company is generally permitted to be tied up in employee stock options?

I heard investors don't like it when more than 10% of a company is granted as options to employees. Is this the case?

Public Comments

1. The permitted amount is subject to that agreed to by the Board of Directors, which are duly elected by the stockholders. I don't think there is a "magic" number but certainly the granting of stock options dilutes the ownership percentage of current stockholders, which in the short run is to their detriment. In my opinion 10% is very high.