What It Really Takes to Earn Startup Stock Options ????

What It Really Takes to Earn Startup Stock Options ????

I was catching up with a few founders recently, and the conversation sparked a thought: why do so many employees assume that being early is enough to earn stock options? ?? There’s a widespread misconception that tenure alone qualifies you for these rewards, but the reality is far different. Stock options aren’t just handed out for showing up early—they’re earned through a unique level of commitment, ownership, and impact that goes far beyond just being there. Let’s dive into why the tenure mentality misses the mark and what it really takes to earn stock options.

1. Tenure Doesn’t Equal Impact: It’s About Ownership, Not Time Spent ??

One of the biggest myths is that tenure—simply being an early joiner—automatically entitles someone to stock options. Stock options are not a reward for how long you’ve been with the company; they’re recognition of your impact, contributions, and ownership mentality. Employees who think and act like owners—those who drive the company forward and truly add value—are the ones who earn these rewards, not just those who happened to be there from the start.

2. Understanding the Founders’ Sacrifices: The Years Before the Startup ??

What many employees overlook is the immense sacrifice and hard work that founders put in before a startup even exists. Founders often spend years hustling, investing their own money, and taking personal risks to create the opportunity for a company to be born and thrive. This journey is rarely seen by employees, who often join when the company is already up and running. It’s crucial to appreciate that stock options are not just about being there early—they’re about recognizing the entire journey, including the sacrifices that made the company possible.

3. Avoiding the Victim Mentality: Seeing the Bigger Picture ??

It’s common for employees, especially in startups, to slip into a victim mentality—feeling undervalued, overworked, or underpaid. But this mindset often misses the bigger picture. Stock options are about shared success, not entitlements. Early employees need to shift their perspective from what they’re owed to how they can contribute. It’s not just about what you’re getting—it’s about what you’re building together.

4. More Than Just Showing Up: A Commitment to the Mission ??

Stock options aren’t just perks—they’re a stake in the company’s future. This means you’re not just clocking hours; you’re buying into the mission. Early employees must go beyond the typical employee mindset, fully committing to the startup’s vision and working tirelessly to make it a reality. It’s about being all in, not just around.

5. Embracing Uncertainty: Adding Value in the Unknown ??♂?

Startups are a journey full of pivots, challenges, and unknowns. Simply being an early joiner doesn’t automatically mean you’re contributing value. It’s about how you handle the uncertainty—taking on new responsibilities, solving problems, and continuously adding value. Stock options reward those who can navigate this chaos and thrive, not just those who are present.

6. It’s Not About Being First—It’s About Being Essential ??

The tenure mentality assumes that just being there early is enough. But stock options are reserved for those who are essential to the company’s journey, not just the earliest passengers. They are for the problem solvers, the innovators, and those who step up when things get tough. It’s about being a key player, not just an early one.

7. A Founder’s Mindset: Acting Like a Partner, Not Just an Employee ????????

Stock options are for those who go beyond the employee mentality and act like founders. This means taking ownership of your role, making decisions with the company’s future in mind, and driving initiatives that move the company forward. If you’re waiting for direction instead of finding solutions, you’re missing the point. It’s about being a partner in the journey, not just a participant.

8. Emotional and Mental Investment ????

Early employees who earn stock options are deeply invested in the company’s success. It’s not just about showing up; it’s about showing up fully—bringing passion, resilience, and a willingness to go the extra mile when it matters most. This level of investment goes far beyond just time spent at the company.

Conclusion: Stock Options Aren’t Handouts—They’re Earned ??

The idea that tenure alone qualifies you for stock options is a major misconception. Stock options are about ownership, impact, and contribution—not just being early. They reward those who commit to the mission, embrace uncertainty, and add value in ways that truly matter. So, if you’re looking at stock options, remember: it’s not just about being there first—it’s about being essential, every step of the way. ????


As a founder, what do you think about the tenure mentality? And as an employee vying for stock options, how do you see your role? Let’s discuss—share your thoughts below! ??


Saif AL Essai

Co-founder @ Sampo | Doubling eCommerce Margins with AI Based Pricing ? --> ??

2 个月

ESOP is a great tool for anyone who plan to build a proper startup that is a scalable, fast growing and plan to hire great talent. It’s a bad idea if you are going to fumble around, spending years not knowing what you are building, and hire part-timers, students or people that you don’t plan to pay living wages. & Overall you have to understand your startup trajectory?

Moataz Mukhaimer, MBA

Strategic & Financial Advisor I Problem Solver

2 个月

Very insightful … love the topic and ?? agree

Shubham Ghotekar

Never Give Up on your Dreams and Just Act on it//Buildspace//

2 个月

Insightful????

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