The traditional 90-day exercise period for stock options can be problematic for employees who may not have the funds to exercise their options after leaving a company, leading to unfair situations.

Companies should evaluate their stock option policies regularly to ensure they are fair and beneficial for both departing and remaining employees. To make stock options meaningful, employees must stay until an exit, have their stock vest, and the company must be worth something; otherwise, owning 10% of nothing is still nothing.

Founders should continue to offer equity to employees throughout their tenure, as this incentivizes long-term commitment and aligns interests.

It's crucial to consider the reputational impact on your company when terminating an employee, especially regarding their ability to exercise stock options and the fairness of the process.

The regulations around stock options in Europe are complex and inconsistent, making it difficult to align employee interests with those of shareholders.

The retention trap involves vesting equity over four years, which can create a financial incentive to stay longer than intended, even if you're unhappy.

Single founders should implement vesting on their shares to set a cultural example for employees, demonstrating that everyone is committed to the long-term success of the company.

When distributing co-founder equity, consider not just immediate contributions but also long-term motivation over the entire vesting period.

Equity should vest over time, meaning co-founders earn their shares gradually, and cliffs ensure they must stay for a minimum period to receive any equity.