I just incorporated a Delaware C Corp a few months ago and have no significant activity yet.
I have 2 Advisors that I need to issue options to, and my question is how do I set the option exercise price? I've found a very good white paper here: http://www.google.com/url?sa=t&source=web&cd=1&ved=0CBUQFjAA&url=http%3A%2F%2Fwww-bcf.usc.edu%2F~kjmurphy%2FHallMurf6.pdf&ei=IHCFTPLUOIK6sAOC0Mn2Bw&usg=AFQjCNG8YQwUJdPP4QIbQ8FBsjDQW9DFRw&sig2=_jE-0g8snG0vhkjrFsw08A
The paper suggests to set the option exercise price at-the-money, i.e. at the price of the share on the grant date.
Based on your different experiences, do you have any comments on suggestions on this? I'd like a perspective on tax issues too if possible.