Kwantor vs Stock Options
Better because you don't need a notary to excercise, you can configure trading policy and you get real equity without diluting voting rights from day one. All without administrative overhead.
- Dilutes voting power
- Notary deeds
- (Usually) Non-tradable
- Keep voting rights
- No notary fees
- Matching tax treatment
- (Optionally) Tradable pre-exit
What are Stock Options and when are they used?
Stock options give employees the right to purchase shares in the future at a fixed strike price. They are widely used by growth companies that want to reward long term contributions while managing cash flow. Options typically vest over several years and become exercisable around liquidity events or secondary windows.
What are the benefits of Stock Options?
Options align employees with the company valuation because upside only appears when the share price rises above the strike price. They defer taxation until exercise, which can help participants plan their cash needs. Employers can customize vesting or performance triggers to match strategic milestones.
How does kwantor compare?
Kwantor also provides Participation Options, giving participants the same economic benefit as Stock Options, with matching tax treatment. However, Kwantor's option structure eliminates the need for notary deeds for exercise and transfers. Additionally and importantly, when Kwantor's options are exercised, voting rights are preserved.
What are the benefits of kwantor compared to Stock Options?
Kwantor avoids the cash burden and administrative risk that appear when options are exercised. Trades and transfers happen through a digital workflow, giving finance teams instant records for auditors. Since the options do not dilute voting rights, companies can maintain a stable ownership structure while still offering attractive incentives.