Comments on: What The Heck Are My Startup Stock Options Worth?! Seven Questions You Should Ask Before Joining A Startup http://infochachkie.com/options/ Hands-on startup advice for emerging entrepreneurs Fri, 09 Mar 2012 02:42:56 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Top Ten infoChachkie Entries Of 2011 http://infochachkie.com/options/comment-page-1/#comment-16444 Top Ten infoChachkie Entries Of 2011 Thu, 22 Dec 2011 16:07:10 +0000 http://www.infochachkie.com/?p=384#comment-16444 [...] What Are My Options Worth? Organic traffic [...] [...] What Are My Options Worth? Organic traffic [...]

]]> By: Quora http://infochachkie.com/options/comment-page-1/#comment-16172 Quora Wed, 05 Oct 2011 06:07:32 +0000 http://www.infochachkie.com/?p=384#comment-16172 <strong>What information about stock options should I expect when considering an offer from a startup?...</strong> I was involved in hiring hundreds of people at startups and I was always shocked at how passive most people were when it came to asking the right stock option questions.   If you do not have enough information to understand the value of your option gra... What information about stock options should I expect when considering an offer from a startup?…

I was involved in hiring hundreds of people at startups and I was always shocked at how passive most people were when it came to asking the right stock option questions.   If you do not have enough information to understand the value of your option gra…

]]> By: Quora http://infochachkie.com/options/comment-page-1/#comment-13157 Quora Wed, 23 Feb 2011 07:27:57 +0000 http://www.infochachkie.com/?p=384#comment-13157 <strong>What are the right questions to ask when negotiating a job offer?...</strong> I hired a lot of entrepreneurs over the years and nothing was more disappointing than an unreasonable, uniformed request during the recruiting process.  When negotiating, it usually does not hurt to “ask” for more. However, there are certain hiring pro... What are the right questions to ask when negotiating a job offer?…

I hired a lot of entrepreneurs over the years and nothing was more disappointing than an unreasonable, uniformed request during the recruiting process.  When negotiating, it usually does not hurt to “ask” for more. However, there are certain hiring pro…

]]> By: Quora http://infochachkie.com/options/comment-page-1/#comment-12023 Quora Wed, 09 Feb 2011 16:59:33 +0000 http://www.infochachkie.com/?p=384#comment-12023 <strong>What information should an employee receive with a stock option offer?...</strong> A lot more than they are usually given. At the very least, you should know the exact percentage that your option grant is of the startup's TOTAL capitalization (which includes all approved options (granted and ungranted), common stock, warrants and pr... What information should an employee receive with a stock option offer?…

A lot more than they are usually given. At the very least, you should know the exact percentage that your option grant is of the startup’s TOTAL capitalization (which includes all approved options (granted and ungranted), common stock, warrants and pr…

]]> By: Quora http://infochachkie.com/options/comment-page-1/#comment-11760 Quora Sun, 06 Feb 2011 06:39:36 +0000 http://www.infochachkie.com/?p=384#comment-11760 <strong>Is there a difference between getting equity, stock, shares?...</strong> Yes, options are just that. They give you the "option" of later buying stock, at a set price. In most instances, you must vest such options over time. Stock represents equity ownership. You own it just as you own any other asset. However, at a privat... Is there a difference between getting equity, stock, shares?…

Yes, options are just that. They give you the “option” of later buying stock, at a set price. In most instances, you must vest such options over time. Stock represents equity ownership. You own it just as you own any other asset. However, at a privat…

]]> By: Quora http://infochachkie.com/options/comment-page-1/#comment-11608 Quora Fri, 04 Feb 2011 03:36:09 +0000 http://www.infochachkie.com/?p=384#comment-11608 <strong>Should you join a startup if they refuse to disclose the percentage equity ownership you are getting as part of your offer?...</strong> No. It is impossible to evaluate an option grant if you don't know the company's total capitalization. That is like accepting a salary paid in a currency for which you do not know they exchange rate. Any company that would propose such lunacy is one ... Should you join a startup if they refuse to disclose the percentage equity ownership you are getting as part of your offer?…

No. It is impossible to evaluate an option grant if you don’t know the company’s total capitalization. That is like accepting a salary paid in a currency for which you do not know they exchange rate. Any company that would propose such lunacy is one …

]]> By: Makers vs. Takers | infoChachkie http://infochachkie.com/options/comment-page-1/#comment-6613 Makers vs. Takers | infoChachkie Thu, 09 Dec 2010 18:24:08 +0000 http://www.infochachkie.com/?p=384#comment-6613 [...] all of my startups, every employee owned a portion of the pie factory via Option Grants and thus we all were motivated to build a company that created the tastiest pies we could make. [...] [...] all of my startups, every employee owned a portion of the pie factory via Option Grants and thus we all were motivated to build a company that created the tastiest pies we could make. [...]

]]> By: Ramesh http://infochachkie.com/options/comment-page-1/#comment-1674 Ramesh Fri, 20 Nov 2009 13:21:36 +0000 http://www.infochachkie.com/?p=384#comment-1674 Hi, What happens if an employee leaves the company with many vested shares, But company does not have "excersice window" not opened? Also, What to do when you are required to pay 30cents of tax for 1cent worth share? (Because of Govt taxes work on FMV) Rgds, Ramesh Hi,

What happens if an employee leaves the company with many vested shares, But company does not have “excersice window” not opened?

Also, What to do when you are required to pay 30cents of tax for 1cent worth share? (Because of Govt taxes work on FMV)

Rgds,
Ramesh

]]> By: Uncle Saul http://infochachkie.com/options/comment-page-1/#comment-1422 Uncle Saul Thu, 09 Apr 2009 04:13:49 +0000 http://www.infochachkie.com/?p=384#comment-1422 Harry, Your ratio sounds about right to me. I agree that you should not "bank" on your options - you should consider them gravy. However, if their risk profile is appropriate, it may make sense for some folks to take a reduced salary in order to obtain more options. As I state in Youthful Discretion (http://www.infochachkie.com/youthful-discretion/), young people are often able to take greater risk in the form of low pay and higher option grants. Thanks for reading and commenting. Uncle Saul Harry,

Your ratio sounds about right to me. I agree that you should not “bank” on your options – you should consider them gravy.

However, if their risk profile is appropriate, it may make sense for some folks to take a reduced salary in order to obtain more options.

As I state in Youthful Discretion (http://www.infochachkie.com/youthful-discretion/), young people are often able to take greater risk in the form of low pay and higher option grants.

Thanks for reading and commenting.

Uncle Saul

]]> By: Harry Tarnoff http://infochachkie.com/options/comment-page-1/#comment-1337 Harry Tarnoff Wed, 11 Feb 2009 19:36:33 +0000 http://www.infochachkie.com/?p=384#comment-1337 I enjoyed this article. My experience with start-up options is "1 in 10," that is, the options of approximately 1 out of 10 start-ups will actually achieve a significantly rewarding amount. Is anyone doing better? With start-ups, do not mistake options as any kind of excuse for reduced compensation unless you are a risk-taker and factor in the 10% or so success ratio. By the way, another way one can go, particularly for privately held start-ups, is to receive warrants which are treated similarly but not exactly the same way. I enjoyed this article. My experience with start-up options is “1 in 10,” that is, the options of approximately 1 out of 10 start-ups will actually achieve a significantly rewarding amount. Is anyone doing better? With start-ups, do not mistake options as any kind of excuse for reduced compensation unless you are a risk-taker and factor in the 10% or so success ratio. By the way, another way one can go, particularly for privately held start-ups, is to receive warrants which are treated similarly but not exactly the same way.

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