Stock options are a significant component of startup employee’s’ compensation. These financial instruments are complex, fraught with risk and unintended consequences. I’ll be dedicating a few posts on the topic of stock options, specifically as a tool for employee compensation at startups. The first post will cover the basics of these instruments and how one earns - vests - them over time. The second post will address liquidity, or more generally how once can sell startup stock. Finally, my last post will focused on my major concerns with the “typical” stock option package and how startups can reduce some of the financial burden and risk posed by these instruments on their employees.
Startup stock options: The fundamentals
Startup stock options: The fundamentals
Startup stock options: The fundamentals
Stock options are a significant component of startup employee’s’ compensation. These financial instruments are complex, fraught with risk and unintended consequences. I’ll be dedicating a few posts on the topic of stock options, specifically as a tool for employee compensation at startups. The first post will cover the basics of these instruments and how one earns - vests - them over time. The second post will address liquidity, or more generally how once can sell startup stock. Finally, my last post will focused on my major concerns with the “typical” stock option package and how startups can reduce some of the financial burden and risk posed by these instruments on their employees.