Stock Options Questions


2 Votes
1 Answers
2.64K Views
What is considered "generous-stock-options" for a start-up company in its early days?

We are a young startup, founded by 3 members about a year and a half ago, and recently closed a seed-stage investment round. We are about to hire our first 3 employees, 2 tech, 1...

asked Dec 18 '12 at 17:25
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Founder
11 points

1 Votes
1 Answers
3.34K Views
Restricted Stock Units (RSU) in a job offer

I've seen a few job offers where in addition to the salary the company offers X,000 Restricted Stock Units (RSU). I'm still trying to understand owning equity as one of the early employees for a...

asked Dec 6 '12 at 05:39
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Wwwuser
125 points

1 Votes
3 Answers
2.31K Views
Joining startup question on salary

I've been approach by a startup to join them. I'm currently making 80k USD as a developer, not knowing much about the startup world. What would you consider a reasonable offer from them? Knowing...

asked Sep 6 '12 at 03:32
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Pdiddy
108 points

0 Votes
1 Answers
2.28K Views
Structuring a stock earnout on start-up?

We are contemplating a start-up with 2 main founders, who will put cash in and work in the business, and 2 angel investors who will only put in cash. The way we want the ownership to work out...

asked Aug 6 '12 at 03:20
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Stringfellow
18 points

4 Votes
2 Answers
3.13K Views
Is this a fair CEO offer for an experienced CFO/COO

My question/story is this: two years ago I broke ground on a startup. We planned and planned, raised some funds and broke ground writing code. Two years later we put $250k into the business, have...

asked Aug 2 '12 at 15:39
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Webwrks
131 points

3 Votes
1 Answers
9.66K Views
Are there any reasons I can't issue options to foreign contractors?

My company is a U.S. C-Corp and we have recently created a stock option plan that allows for both ISO and NSO option grants. We have a foreign contractor located in China who does work for the...

asked Jun 1 '12 at 08:47
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Tricia Yee
16 points

0 Votes
1 Answers
2.49K Views
dilution of stock options for a company going through multiple rounds of funding?

How can I have an idea of the dilution of employee stock options for a company that is going through different rounds of funding? For example, a company that has received a total of $100M funding...

asked May 7 '12 at 22:02
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6152142613526
68 points

0 Votes
2 Answers
2.95K Views
0.5% equity and 2k/month to be the #1 CDO in a startup

I really need your help. It 's the first time I've been asked to work for a startup. The company has already been made??, founded by 2 partners, and has already received an initial investment, but...

asked Apr 6 '12 at 20:58
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Vin
1 point

0 Votes
1 Answers
2.42K Views
Employee Stock Options Plans effect on SEC Registration Requirements

Companies that have $10 million in assets and 500 shareholders of record are currently required to register with the Securities and Exchange Commission (SEC) and are thus subject, among other...

asked Mar 26 '12 at 07:38
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Blunders .
899 points

2 Votes
4 Answers
6.33K Views
stock options or convertible notes?

I will be joining as a senior developer on a startup and I will be working 20 hours a week remotely. I have a day job which pays my bills now. The company is not funded yet so we will not be given...

asked Apr 5 '12 at 01:59
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Java Mouse
113 points

4 Votes
5 Answers
3.03K Views
Prevented from seeing stock option plan

I've been working for large private software company (the last round of investment was very, very large) and my offer letter told me I would receive X number of options as long as the board...

asked Mar 16 '12 at 00:54
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Rox0r
125 points

4 Votes
2 Answers
3.6K Views
Why did Facebook stop giving out options in 2007 and start giving out RSUs (restricted stock units)?

Generally, I'm asking, what advantage did the company see in switching to RSUs over options?

asked Feb 3 '12 at 00:22
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Michael Pryor
2,250 points

0 Votes
2 Answers
2.82K Views
Stock equivalent options if the company is self funded and does not intend to go public

I run a company that’s self funded and does not intend to go public (this might change due to the nature of the business). I have started to experience scale and traction, which means that I will...

asked Jan 23 '12 at 00:01
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Quintin
101 points

2 Votes
1 Answers
2.23K Views
Evaluating a "co-founder" offer

I was presented with the following offer and while I'm waiting legal advice, I'm interested to know your opinions. I'm been offered a "co-founder" seat with a bit over 10% in stock options vested...

asked Jan 24 '12 at 15:59
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Latecomer
11 points

2 Votes
1 Answers
2.68K Views
Have you setup an options pool for your S-Corporation? Is it allowed?

My S-Corp didn't have an options pool when we first set it up. I'm now thinking of creating one (15% of total) to fix that as a talent incentive mechanism. My accountant said that C-Corps have no...

asked Dec 29 '11 at 17:49
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Sid
649 points

3 Votes
5 Answers
2.76K Views
What is the best way to adjust options?

Me and my partner are about to start a new startup. I'm much more financially prepared than he is so we've agreed on the following structure. I would fund the company with half a million for the...

asked Nov 30 '11 at 10:49
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Erotsppa
139 points

1 Votes
1 Answers
2.46K Views
Zynga stock options story and damage to startup community

Zynga is requiring some employees to give back their stock options or they will be fired (cnet.com ) It seems like with this approach Pincus made start ups vastly more risky for people to join. In...

asked Nov 12 '11 at 04:09
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User84686
139 points

1 Votes
2 Answers
2.33K Views
Can you issue a Convertible Note to be converted prior to series A?

Situation: Closed initial kick-start seed investment with angel investor. Deal was done on an equity basis equaling a postmoney valuation of 400k. Have a few FFF who would like to invest small...

asked Oct 19 '11 at 12:53
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Eric Littleton
107 points

0 Votes
2 Answers
2.51K Views
Event of a sale prior to vesting schedule completion

Starting to work with our legal team and its time to expand the team. A few questions on the vesting schedule. Employee 1: CFO position I am bringing in a CFO from a financial background with...

asked Oct 21 '11 at 12:11
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Eric Littleton
107 points

2 Votes
4 Answers
10.8K Views
How to determine the worth of stock option?

Say I was given an incentive stock option for X number of shares at an exercise price of Y per share. The shares vest over 4 years. How do you determine the worth of this stock option? A) What is...

asked Oct 10 '11 at 14:58
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Jo Jo
148 points