What percentage of a company is generally permitted to be tied up in employee stock options?

I heard investors don't like it when more than 10% of a company is granted as options to employees. Is this the case?

Answers:
The permitted amount is subject to that agreed to by the Board of Directors, which are duly elected by the stockholders. I don't think there is a "magic" number but certainly the granting of stock options dilutes the ownership percentage of current stockholders, which in the short run is to their detriment.

In my opinion 10% is very high.

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