Stock Plan (equity incentive plan) is a formal plan approved by the board (and often stockholders) that authorizes a pool of shares for equity awards such as stock options, RSUs, restricted stock, and other equity-based compensation. In venture-backed companies, the Stock Plan governs grant mechanics, administration, and compliance (including Rule 701), and Stock Plan amendments (like increasing the share reserve) are common in later financings.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
