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ngorski

Re:Do the math on your stock options on Thursday December 31, 2015 @03:54PM (#10819638)
> so they take no risk of paying taxes on something which might be worthless

If a the time of a liquidity event the stock is worth less than an employee's strike price, they'll still be underwater. They'll either owe the loan back (the difference between the strike price and exit valuation) or the loan is forgiven and they owe income taxes on the forgiven debt. So there's still risk of owing tax on equity worth less than the current valuation at the time of their offer, right?