Option Pool Refresh
Definition
An increase to the option pool approved by the board or shareholders, typically at or around a new funding round, to provide capacity for future equity compensation grants. An option pool refresh increases the fully diluted share count and dilutes all existing holders. The dilutive effect of a proposed refresh must be modeled before approval and disclosed to investors during a fundraising process.
Common Misapplication
The most common misapplication is approving an option pool refresh as part of a funding round close without modeling its dilutive effect on founders and common shareholders separately from the dilution caused by the new shares issued to the investor.
FFI Standard Reference
This term is defined and applied in Book 3, Section 3.3: The Equity Compensation Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Option Pool Refresh. https://ffistandard.org/glossary/option-pool-refresh/. 2026.