Introduction: The Grant Letter

For the next few articles, we will be breaking down the key terms of a sample stock option grant letter and explains what your grant actually means — including how many options you’ve received, when they vest, and what actions you need to take.

While the exact format may vary across companies, most grant letters follow a similar structure, where you'll learn how to:

1. Understand the total number and paper value of your stock options

2. Identify when and how your equity vests over time

3. Interpret the grant date and the governing plan (scheme)

4. Understand 1:1 exercise rights — one option equals one share

5. Recognize why it’s important to review your full scheme document for details like strike price, expiry, and exit terms

6. Take the right next steps — from accepting your grant to tracking vesting milestones and asking informed questions

This guide is designed to help you navigate the fine print, make confident decisions, and get the most value from your employee equity.