This year is the first time I am entitled to a bonus. If I get it as shares, I get 15% discount on the price of the shares and then the shares get matched in a few years time. Or is taking the cash a better option? I live in the UK.
Bonus in cash or company shares?
byu/Asleep-Letterhead821 inpersonalfinance
Posted by Asleep-Letterhead821
1 Comment
A 15% discounted share is something to seriously consider, but in any given year it depends on your company’s financial outlook compared to other investment opportunities. Before accepting the discounted share option, be sure to understand how to redeem/cash out your shares for cash in the event you separate from the company or change your mind later.
If your company has the potential to be bought out by another company, or going public if it is not already, then those 15% discounted shares may be of much greater value than many, many other equity investment opportunities.
The best answer to your question is unknowable because we can’t know the future.