Passage

Option Drop: grant stock options on the spot for the behavior you want

Martin Basiri, who works 8:30am to midnight, gets his team to stay late and go above and beyond by announcing an 'option drop' — instantly granting 20,000–50,000 share options to whoever does something great, or to everyone still in the office at 10pm. Shaan notes immediate, specific, concrete rewards reinforce behavior far better than values on a wall.

“He goes, option drop. I said, what? And, and he is like, option drop. I said, what's an option drop? He goes, at any time in my company, if anybody does something awesome, I just say option drop, 50,000 options. I just give them share options in the company on the spot. Like if somebody has a great idea, they go above and beyond for a customer, they solve a problem in the meeting right there. Option drop.”

Steal thisWhen someone solves a big problem or goes above and beyond, reward them with equity immediately and publicly, then have it papered afterward.