Re:LivingSocial: Employees' and Founders' Common Stock Now W...
by kevinskii on Thursday February 21, 2013 @05:36PM
(#5261032)
> Grants are always subject to board approval...and employees always get the options.
My sibling comment offers a counterexample [1].
> X00,000s of stock options is meaningless, only percentages matter. You should always ask this question.
Exactly right. They weren't willing to answer this question in writing.
> Similarly, they can't specify the strike price because for legal reasons the strike price is set when the options are issued.
I believe it's legal to set the strike price at X percent of the stock price, which seems to be what you'd really need to try to valuate private company stock options anyway.
My sibling comment offers a counterexample [1].
> X00,000s of stock options is meaningless, only percentages matter. You should always ask this question.
Exactly right. They weren't willing to answer this question in writing.
> Similarly, they can't specify the strike price because for legal reasons the strike price is set when the options are issued.
I believe it's legal to set the strike price at X percent of the stock price, which seems to be what you'd really need to try to valuate private company stock options anyway.
[1] http://news.ycombinator.com/item?id=5258483