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stefanDM

Re:How to evaluate ESOP offer at salary negotiation? on Thursday March 11, 2021 @03:04PM (#26428382)
Thanks for the info. I'm still a bit confused though. Correct me if I'm wrong, but the strike price is not necessarily the value of the stock, no? Plus I would need to subtract it from the value of the stock in order to exercise the option. So let's say after 4 years I want to exercise 100,000 stocks at 1$ strike price each. Let's say the the current valuation is 5$ per stock. My return is 100,00$ * 5, minus the cost of the strike price (100,000$). In total that's 400,000$

So I'm not sure why the strike price is used to define the value, since I would need to pay that amount anyway. I would make a profit for any dollar for which the stock is valued after the strike. Or am I getting it wrong?

How to evaluate ESOP offer at salary negotiation?

I've been offered a position in an early stage startup with a substantial percentage of my compensation in stock options. Aside to whether going for esop or cash is a good/bad idea, I'm having issues evaluating the offer and understanding its fairness. I read about strike price, vesting etc. but I'm having issue understanding the monetary value of the stock option at present.Let's say that the...

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