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.
Question regarding employee stock options
byu/CodeName_Henry instocks
Posted by CodeName_Henry
2 Comments
just claude it man
That is how employee stock options work.
You get offered a purchase price. Regardless of future price, that is the price you can pay to buy stock (yes you still need to buy them). So it’s not free shares like RSUs.
Also if stock appreciates a lot and you buy them then, you may have to pay AMT tax.
Good luck!