Key insights
- The post discusses an employee's confusion regarding their stock options. The key takeaway is the employee will receive options to purchase 10,000 common shares over four years, with the strike price to be determined at the next board meeting. The employee will only profit if the stock price exceeds the strike price, and they must use their own funds to exercise the options and acquire the shares. This could be a slight negative for the market as it may disincentivize the employee.
I need some serious help understanding my employee stock options. I am receiving 10000 shares over the next 4 years. My offer letter specifically states “Common Shares” but talking to fellow employees, it seems like its options, and not RSUs or direct shares. Seems like I only make money if the stock goes up from the strike price, and If I want to actually own the shares, I have to buy them with my own money.
I was told when the board meets next, a strike price will be decided for my shares.
Anyone with experience and get help break it down in simple terms would be greatly appreciated.