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TVS 027 – Employee Stock Options

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TVS 027 – Employee Stock Options

This week's episode will be on early stage employee stock options, an episode very critical for anyone interested in joining an early stage company that offers them stock options. ...

This week’s episode will be on early stage employee stock options, an episode very critical for anyone interested in joining an early stage company that offers them stock options. We talk about the valuation, tax liability, and questions to ask about the company to make sure you are getting the best compensation package possible. I hope you enjoy!

  1. How do employee stock options work?
    1. Compensation and share in the company
    2. Vesting Schedule
    3. Exercise dates
    4. Taxes
  2. Example of an employee stock option package
    1. Paying millions in tax liabilities for high growth technology startups
    2. Making it difficult for employees to leave
      1. Retaining Talent
  3. New law proposed in Congress
    1. H.R. 5719 – 114th Congress
      1. Empowering Employees through Stock Ownership Act
  4. Why is this important to you?
    1. Negotiating your stock option package
      1. Monthly vesting
      2. Longer exercise period
      3. Shorter vesting cycle
      4. Additional options on performance
    2. Questions to ask
      1. Fully diluted basis
      2. Further rounds needed before going public
      3. Any Debt?

As always, please let me know if you have any questions, comments, or suggestions. Email me directly at alan@thevampiresquid.com or on the contact form. Also, please subscribe to my facebook page for live updates facebook.com/thevampiresquid. Also follow me on Quora at https://www.quora.com/profile/Alan-Li-1. To support us check us out at Patreon https://www.patreon.com/thevampiresquid

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