Create an Employee Stock Option Plan (ESOP)

Setting up an Employee Stock Option Plan (ESOP) lets you offer equity to your team without issuing shares upfront. Here's how to create your option pool and start granting options.

Create Your Option Pool

1. Click Incentive plans from the main menu.

2. If this is your first option pool, click + Add equity plan then Add Option pool. If you have an existing option pool, select Options then click + New option pool.

3. Configure your pool settings:

   • Pool Size: Enter the percentage of equity for your ESOP

   • Advanced Mode: Optionally set custom pool name, share class, specific number of options, and trust nomination settings (AU only)

   

4. Click Next to proceed to document selection.

5. Select your plan documents:

   • Plan Rules: Choose from Cake's templates or upload your own

   • Offer Letter Templates: Select from Cake's templates or add custom documents

   • You can also choose to add documents later

6. Click Next to finalize your option plan setup.

Your option pool is now active and ready for option grants.

Next step: Grant Options to Employees

Still Need Help?

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