Businesses on Founded can now easily complete a share split to increase the number of shares in circulation without changing the proportion owned by each shareholder.
This new feature works in tandem with our Employee Stock Option Plan, making it even easier for businesses to offer equity to their employees.
A Share Split is a simple way for a company to increase the number of shares in circulation without changing the proportion owned by each shareholder.
When initially incorporating a company, it's common for the shareholders to each take a small number of shares. This keeps things simple at the start. But as the business grows, the shareholders may want a larger number of shares so they can manage ownership in smaller increments. A Share Split, which splits the existing shares into multiple shares, is a simple way of accomplishing this.
Share Splits can now be easily completed from within Founded when a business is on our Managed Corporation Plan with the Managed Shareholders add-on.
Employee Stock Option Plans
This new feature to facilitate share splits works in conjunction with our Employee Stock Option Plan. A Share Split is often conducted immediately before an Employee Stock Option Plan is implemented within a business. This allows for a greater number of shares to be in circulation, and for the owners to award options to employees in smaller increments.