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.

If a terminated employee has invested shares, repurchase them promptly to avoid complications.

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.

Firing an employee is a difficult but necessary task; do it quickly and professionally to maintain company morale and productivity.

Effective startup founders handle employee terminations well, which is a hallmark of professionalism.

When managing a company, it's essential to create incentives for employees to stay, especially if they face the risk of being fired.

When terminating an employee, communicate clearly and directly without making excuses or apologies.

Be transparent with new hires about stock options and salary, as your first employees are crucial for building loyalty and trust.

It's crucial to consider everyone's perspective when making decisions, as it can significantly impact the outcome of the company.