Stock Option?
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- Beeswax
Is there anybody who worked for stock option besides salary?
Are there any matters that need to be considered before signing for it?
Remember what happened to Eduardo Saverin when he got screwed over stock shares of Facebook by Suckerberg...
- SrSamaurai0
Make sure you get a lot of them and try to get some cash up front as well.
- ukit0
Just keep in mind the value of a stock option is very theoretical. When a startup feels the need to sweeten the deal with stock options it may be a sign they don't have the financial backing that could actually make them a success.
- ********0
I did once + salary. Check SEC restrictions on the types of options http://www.sec.gov/investor/pubs…. It could look good initially but by the time you can cash out its just paper to draw on. In my case i watched about a million dollars in option dwindle to nodda.
- randommail0
Stock options mean nothing unless you have the power to exercise them within reason. And they're worthless if they're from a startup, until they get traded. Bought by a larger company with cash or if they go public.
Make sure you get your desired salary first. Anything else on top of that is just extra.
- graham0
You also might need a year vested to get anything, and 3 years to get all of them?
- bored2death0
Things like stock options and 401k's are jokes. Hold on to your money or someone else will.
- not true on 401k. substantially better investment return possible over time. stock is a a gamble.zenmasterfoo
- zenmasterfoo0
At my last gig ( a startup) I was offered a reduced salary and a chunk of stock to pad the difference. I left after 11 months when I realized the company had been promising a lot for more than 2 years and seen no return on any of it. When they lost the latest round of attempts at VC I bailed. They're still languishing. I'm now making far better salary elsewhere.
Advice: If you can take a chance on a good idea do it. But measure that enthusiasm with a critical look at senior management. The company will have a far better chance at success if the vision is in tact and managed by people with talent.
The owners also need to maintain their distance from those doing the work to allow for innovation. If you're missing some of these chances are the stock will be worth less than the valued amount when you started.