Stock Options Questions


2 Votes
1 Answers
1.76K Views
What happens when in the money stock options are exercised?

If the company is liquidated and options are in the money, what are the mechanics of obtaining stock? Who receives the exercise price that is paid? If this exercise amount is received by the...

asked Sep 30 '11 at 00:55
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Matt
11 points

0 Votes
3 Answers
2.55K Views
What will happen if an individual invest in the company before it goes public?

Lets assume the example of Groupon which is going to be public this year or next year.Suppose if someone invests $100Million in the company,will its valuation increase for the individual or for its...

asked Oct 3 '11 at 18:34
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Himanshu Prasad
51 points

1 Votes
3 Answers
2.6K Views
How can an Advisor be rewarded if there's not a VC round or Sale down the line?

A guy who's help our SaaS startup a lot in the 1st 2 month of its life has suggested that we form and he join our Board of Advisors. He's very helpful to us, a great guy and will definitely be an...

asked Oct 5 '11 at 00:28
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Dmurtagh
157 points

2 Votes
6 Answers
3.18K Views
Considering an offer from a startup, two different compensation packages. Advice?

A bit of background: The two founders are guys I used to work with before our previous employer (a SaaS company) was aquired back in 2010. One of the founders was a senior sales exec and the other...

asked Sep 23 '11 at 00:46
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Kronprinz
113 points

1 Votes
5 Answers
6.06K Views
salary and stock options in a startup for lead developer - advice needed

I got an offer from my friend in a startup company with $30K/year (take into account it's not in a "hot" spot like Silicon Valley or NY, but yeah, it's not high in any standards, and the job's in a...

asked Sep 23 '11 at 16:13
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Anh Pham
109 points

2 Votes
2 Answers
2.26K Views
Can the total number of stocks in a company change?

I was discussing doing some work for shares in a startup when the owner mentioned something interesting. Basically I would be given X shares for my work and with the current number of stock that...

asked Sep 6 '11 at 00:13
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Abe Miessler
264 points

1 Votes
2 Answers
2.42K Views
What should I expect for compensation in an "equity for compensation" deal?

Similar to this question: Amount of vesting equity for #3-#4 employee? But it seems to discuss what equity paid developers should expect. If I am a developer that is unpaid, what would be a...

asked Sep 6 '11 at 00:53
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Abe Miessler
264 points

5 Votes
3 Answers
6.09K Views
Asking for equity vs stock options as employee

As an employee at an early stage start up company , what are the benefit of stock option vs equity? It seems to me like equity is far preferable , but is there any advantage to stock option over...

asked Sep 12 '11 at 23:26
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Abba Abba
28 points

2 Votes
1 Answers
2.3K Views
Can a UK Limited company (with standard articles) issue options?

I am about to start a limited company, myself and the other initial shareholders wish to be able to grant options to individuals who contribute significantly. We understand that we can't issue...

asked Aug 27 '11 at 20:09
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James
121 points

2 Votes
2 Answers
2.52K Views
How can early startup employees ensure that founders do not intentionally dilute them?

I am considering joining a startup as employee #2. I expect to receive some equity (either stock or options). Is there any way in which I can protect myself against the founders simply issuing...

asked Sep 3 '11 at 03:57
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Abtin Forouzandeh
121 points

1 Votes
1 Answers
1.81K Views
I don't understand tax obligations on options

Here's the situation: two founders each own 50% of the company angels / VCs / FFFs are about to invest the company will set up a 10% options pool for new hires When a new hire starts, how do...

asked Aug 14 '11 at 02:41
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W. Matthew Wilson
104 points

4 Votes
2 Answers
3.43K Views
If a successful startup's CEO makes what I believe is a low offer for employment as CTO, how can I make an effective counteroffer?

Over the past ten months, I've been working with a startup in a technical capacity as a contractor. Prior to my joining, they had a rocky start and spun their wheels for a while with an outsourcing...

asked Aug 17 '11 at 15:38
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Exr
21 points

3 Votes
3 Answers
4.32K Views
What is founder's stock?

What does it mean when a consultant ask for founders stock in a pre-funded startup for payment? Is it a special class of stock? Is it non-dilutible?

asked Aug 8 '11 at 04:09
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Jirad
105 points

0 Votes
1 Answers
2.21K Views
Popularity of restricted stock?

Several newbie questions for restricted stocks... Is it common for seed fund to invest in restricted stock? Is it common to issue restricted stock to cofounder? Is it common to turn option to...

asked Jul 5 '11 at 01:47
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Yoga
116 points

1 Votes
2 Answers
2.71K Views
How dividend payments work?

So let's make an example story: I'm the founder and the only developer of a web startup. Currently there is no one else other than me in the company. I've added a sales guy, wishing to give him...

asked Jul 7 '11 at 11:57
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Ryan
139 points

4 Votes
1 Answers
3.12K Views
Is story on how Skype employees stock options end up being worthless on acquisition common or not?

This is in response to the latest story about how Skype stock options are worthless: http://blogs.reuters.com/felix-salmon/2011/06/24/upgrading-skype-and-silver-lake-to-evil/

asked Jun 25 '11 at 12:02
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User10483
208 points

2 Votes
2 Answers
2.5K Views
Would Skype's stock buyback plan be as evil if they paid fair market value?

Skype's buying back of stock options at the exercise price is pretty evil, no doubt. But is it equally uncommon for a company to put in conditions allowing them to buy back vested stock at fair...

asked Jun 27 '11 at 06:42
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Sean
134 points

3 Votes
2 Answers
3.13K Views
Evaluating a "Promise" from a startup company for pay raise, benefits, stock options within a specified period of time?

I would appreciate any advice based on a current situation that I am in that I think a lot of people involved in startups (especially developers) find themselves in at some point. Basically, I'm...

asked Jun 29 '11 at 15:19
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Rick
136 points

0 Votes
2 Answers
2.22K Views
A Question on Stocks

I'm generally interested in how economy works, because i think it closely relates to businesses. I would like to ask something about stocks. Imagine that there is a company with 100 stocks. Now,...

asked Jun 6 '11 at 17:51
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Spyros P
132 points

3 Votes
3 Answers
3.26K Views
Need advice on Startup Equity Distribution for a Social Network Website

I an a technical guy, plans to goes full time for a startup to build a social network site, with a friend who is a business guy. Initially, he will work for part-time until our startup is enough to...

asked Jun 10 '11 at 01:42
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Jack
26 points