HBG Releases Landmark Research Brief: “Share Options Aren’t Broken. They’re Designed for the Wrong Century”

A data-driven analysis revealing why legacy equity incentives are ineffective in the contemporary startup and scale-up economy — and how organisations may redesign these incentives for a post-2020 landscape.

Helsing Business Group has today announced the publication of a significant new research brief titled “Share Options Aren’t Broken. They ‘re Designed for the Wrong Century,” which provides a comprehensive, evidence-based examination of why traditional stock option schemes no longer function as practical incentive tools for employees within modern technological ecosystems. The analysis offers a contrarian, system-level explanation for the increasing misalignment between employee ownership, startup liquidity timelines, and venture capital structures across the EU, UK, and US.

The report emphasises three primary structural drivers that undermine the effectiveness of stock options in the present day:

1. Extended private-company lifecycles, with IPO timelines now averaging ten to twelve years;
2. Diminishing employee tenure, particularly within technology and product roles, where the median duration is approximately two years.
3. Liquidity asymmetry, whereby founders and investors can access early secondary sales, while employees bear disproportionate risks.

In response to these structural deficiencies, Helsing Business Group proposes a modernised equity architecture. This includes stage-aligned instruments, extended exercise windows, programmed employee liquidity events, and transparent frameworks for equity governance. The brief contends that organisations which modernise their equity strategies will secure a measurable advantage in talent attraction, retention, and the creation of long-term value.

“The startup economy is operating on 21st-century timelines with 20th-century equity instruments. Leaders who undertake the redesign of their incentive systems today will differentiate themselves within competitive markets, whereas reliance on obsolete option structures will exacerbate risks related to retention and morale.”

This research brief is now accessible to founders, chief executive officers, investors, compensation committees, and policymakers seeking a rigorous, data-oriented understanding of the future trajectory of employee ownership.