Startup stock options often receive criticism due to the financial and tax burdens they can impose on employees, who may end up with little to no financial gain after years of service. This issue is partly attributed to the tax system and the incentives it creates, but startups also exploit these constraints to retain employees. The main problems include insufficient stock allocation, lack of transparency about stock options, the inability of employees to afford exercising options and the associated taxes when leaving the company, and unfavorable tax treatments. While some solutions are straightforward, like improving transparency and stock allocation, others require more initiative from company founders. Alex MacCaw, CEO of Clearbit, advocates for treating employees fairly by ensuring they can exercise their stock options through measures like pre-purchasing options or extending the exercise period to align with company success. He urges startup founders to prioritize their employees' welfare, emphasizing that employees should remain with a company out of desire, not compulsion.