How Cake calculates diluted equity ownership for option holders
When you issue stock options in Cake, we automatically calculate each option holder's percentage of fully diluted equity. This appears as "Ownership" in their profile and assumes all granted options will eventually vest.
How we calculate fully diluted equity percentage
Fully diluted ownership = Number of granted options ÷ Total company securities
Total company securities include:
All issued shares
All granted options (vested and unvested) including ESOP/Stock Options, RSUs, and Share Plans
Where to view ownership percentages
Individual cumulative ownership: View any stakeholder's total diluted ownership by clicking their name from People or Ownership → Cap Table → Option holders. Their profile shows their combined ownership across all option grants.
Individual offer ownership: In your Incentive plans → Options offer list, ownership displays separately for each individual offer, not cumulatively.
For stakeholders with multiple offers
If someone has multiple Employee Stock Option Plan (ESOP) offers, their diluted ownership accumulates. For example, if they have two grants of 0.5% each, their total diluted ownership is 1.0%.
You'll see this total on their individual stakeholder profile, but each offer still displays its individual percentage in your offer management screens.
Key points to remember
Ownership calculations assume all options will vest
Percentages update automatically when you issue new equity
Individual profiles show total cumulative ownership
Offer lists show per-offer ownership
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