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In this tutorial, the focus is on compensating early employees in startups through stock options. Startups in the US typically pay employees with a salary and stock options to incentivize them to enhance the company's valuation. The video primarily addresses private companies, where stock ownership is held by founders and select investors. Key to this compensation structure is the stock option pool, a set of shares designated for employees. This pool is formalized through a legal document approved by the Board of Directors, representing a new issuance of company shares. The video does not cover public companies, as the author lacks experience in that area.