The stock-options tag has no wiki summary.
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5answers
2k views
salary and stock options in a startup for lead developer - advice needed
I got an offer from my friend in a startup company with $30K/year (take into account it's not in a "hot" spot like Silicon Valley or NY, but yeah, it's not high in any standards, and the job's in a ...
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1answer
288 views
What happens when in the money stock options are exercised?
If the company is liquidated and options are in the money, what are the mechanics of obtaining stock?
Who receives the exercise price that is paid? If this exercise amount is received by the company ...
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1answer
39 views
Can some wealthy investor invest or can have a deal with the compeny before it goes public?
Well I just had a question in mind that a wealthy investor invest his money in any IPO before it goes public.Said that I am referring through recent Goldman Sachs and Facebook deal worth $450 Million ...
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2answers
285 views
Would Skype's stock buyback plan be as evil if they paid fair market value?
Skype's buying back of stock options at the exercise price is pretty evil, no doubt. But is it equally uncommon for a company to put in conditions allowing them to buy back vested stock at fair ...
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6answers
531 views
Considering an offer from a startup, two different compensation packages. Advice?
A bit of background: The two founders are guys I used to work with before our previous employer (a SaaS company) was aquired back in 2010. One of the founders was a senior sales exec and the other was ...
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3answers
2k views
Asking for equity vs stock options as employee
As an employee at an early stage start up company , what are the benefit of stock option vs equity?
It seems to me like equity is far preferable , but is there any advantage to stock option over ...
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2answers
163 views
What should I expect for compensation in an “equity for compensation” deal?
Similar to this question: Amount of vesting equity for #3-#4 employee?
But it seems to discuss what equity paid developers should expect. If I am a developer that is unpaid, what would be a ...
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2answers
231 views
Can the total number of stocks in a company change?
I was discussing doing some work for shares in a startup when the owner mentioned something interesting.
Basically I would be given X shares for my work and with the current number of stock that came ...
2
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1answer
321 views
C Corporation single shareholder / highly-compensated employee limitations?
If I'm a single shareholder/owner and employee of a C Corporation, am I limited from taking any deductions due to being a highly-compensated employee (due to share ownership)?
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2answers
370 views
How can early startup employees ensure that founders do not intentionally dilute them?
I am considering joining a startup as employee #2. I expect to receive some equity (either stock or options).
Is there any way in which I can protect myself against the founders simply issuing ...
2
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1answer
193 views
Can a UK Limited company (with standard articles) issue options?
I am about to start a limited company, myself and the other initial shareholders wish to be able to grant options to individuals who contribute significantly.
We understand that we can't issue shares ...
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2answers
262 views
If a successful startup's CEO makes what I believe is a low offer for employment as CTO, how can I make an effective counteroffer?
Over the past ten months, I've been working with a startup in a technical capacity as a contractor. Prior to my joining, they had a rocky start and spun their wheels for a while with an outsourcing ...
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1answer
81 views
I don't understand tax obligations on options
Here's the situation:
two founders each own 50% of the company
angels / VCs / FFFs are about to invest
the company will set up a 10% options pool for new hires
When a new hire starts, how do taxes ...
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2answers
419 views
Who owns the Stock/Options Pool?
Wondering who owns stock/options pool before they are given out, e.g. in case of vesting. The company? (if yes, can an LLC own stock/options?), or the investor?
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2answers
261 views
How dividend payments work?
So let's make an example story:
I'm the founder and the only developer of a web startup. Currently there is no one else other than me in the company.
I've added a sales guy, wishing to give him ...
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5answers
1k views
Stock options for a senior engineer at an angel funded startup?
I joined a startup 6 months after its founding as a junior engineer (I was right out of college at the time). I've been with the startup for almost 6 years now, and I've progressed to the point of ...
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2answers
268 views
Evaluating a “Promise” from a startup company for pay raise, benefits, stock options within a specified period of time?
I would appreciate any advice based on a current situation that I am in that I think a lot of people involved in startups (especially developers) find themselves in at some point.
Basically, I'm in a ...
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1answer
189 views
Is story on how Skype employees stock options end up being worthless on acquisition common or not?
This is in response to the latest story about how Skype stock options are worthless:
http://blogs.reuters.com/felix-salmon/2011/06/24/upgrading-skype-and-silver-lake-to-evil/
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3answers
555 views
Need advice on Startup Equity Distribution for a Social Network Website
I an a technical guy, plans to goes full time for a startup to build a social network site, with a friend who is a business guy. Initially, he will work for part-time until our startup is enough to ...
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1answer
637 views
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2answers
82 views
A Question on Stocks
I'm generally interested in how economy works, because i think it closely relates to businesses. I would like to ask something about stocks. Imagine that there is a company with 100 stocks. Now, the ...
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3answers
146 views
Is a company allowed to overcommit stock options?
Here's an example, just in case the question isn't clear.
20 employees, 20 million shares in option pool.
Each employee is given 2 million shares with standard terms (1 year cliff, 25% vesting on ...
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3answers
3k views
Can I exercise stock options in a privately-held startup?
My options (ISO's) in a privately-held (VC-funded) startup are slowly but surely vesting. Can I exercise the vested options? What does it mean to exercise options in a privately-held company? If ...
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2answers
257 views
OK to issue options before the first financing round?
For a small startup, I'd like to give options to members of an advisory board and one other person. However, one of my lawyer friends says to wait until after the first round of financing to give ...
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1answer
1k views
What is considered the “grant date” of vesting stock options
I have some options to buy stock in my startup, and they are vesting merrily. When tax regulations discuss "two years after the grant date," is that the date we signed the contract, or the date each ...
2
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1answer
600 views
Company got acquired — what might happen to my stock options? (not an employee yet)
A private company that I accepted a job offer with, got acquired by a public well known company. I should start there on June 1, 2011. They notified me that the offer is still valid.
The offer says:
...
2
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1answer
239 views
Stock Option Plan for Contractors?
I'm starting my first company (software for Reputation Management) and will be contracting 3 guys; 2 full-time paid and 1 who is doing work pro bono. As it happens in the early stages of companies, ...
2
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1answer
323 views
Non Voting Stock in an Acquisition
This might be a UK specific question - not sure if the same applies in the US...
I have a number of 'B Class' shares in a company that, at some point, could be acquired. These B Class shares have no ...
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5answers
612 views
What questions should I ask about stock option grants?
What are the right questions to ask when someone is providing stock options as a form of partnership?
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2answers
4k views
What is an appropriate stock option grant for a senior engineer after the Series A?
I'm looking for suggestions as I'm considering an offer from a startup.
A friend of mine is founding a software startup together with two partners and he's looking for engineers. The idea is ...
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3answers
280 views
Rights of Non Qualified Stock Options
If an employee is given a Non qualified stock option, does this entitle him to any percentage of ownership in the company? For example, an employee is given 51% of the Non qualified stock options, ...
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3answers
3k views
How much in stock options should we offer new employees?
We're a software startup with annual revenue in the ballpark of half a million. We're completely bootstrapped, and have no current plans to take funding. We currently have 4 employees. We're ...
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1answer
114 views
Advice on measuring participation of a new company
I am creating a new startup, the startup is going to consist of 4 members and I need some advice on how to split the participation etc. Here is a brief description of each member and there role.
...
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1answer
277 views
How does option pool size at the time of incorporation impact valuation and funding
Suppose someone needs to incorprate a C-corp, for a high tech high growth business.
How does option pool size at the time of incorporation impact valuation and funding. Or it only matters how ...
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5answers
3k views
How can you insure that your percentage of ownership is diluted at the same percentage of the founders?
I understand when our company raises a fund soon, my share will be diluted. But how can I insure that my diluted percentage is the same as the founders
Currently, I own 2.5% of the company. I am not ...
3
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4answers
185 views
Co-founding with someone I don't know very well
I am starting a company without enough money to pay a second person a salary, but I need the help. I've found someone who seems great - his previous work is beautiful, he has already done some good ...
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2answers
232 views
Keeping track of shares, options, etc in a corporation?
What software is available to keep track of who owns what shares and stock options once I incorporate?
3
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2answers
822 views
Stock Options for VP of Sales?
What is the 'typical' percentage of stock options for an incoming VP of Sales for a $5M software start-up? 1% 2%?
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4answers
520 views
How to set Option Exercise Price?
I just incorporated a Delaware C Corp a few months ago and have no significant activity yet.
I have 2 Advisors that I need to issue options to, and my question is how do I set the option exercise ...
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2answers
736 views
Unvested shares
Let's say a Founder currently owns 100% of the company but wishes to offer 10% of the company to a part-time contributor. He offers a 4-year vesting period to that contributor with a 1-year cliff.
So ...
3
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1answer
74 views
Taking Stock in Clients
All,
I run a contract engineering firm, and I'm considering taking stock in some of my clients in return for reduced rates. I feel comfortable doing this given the continued level of income from that ...
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2answers
646 views
What are the differences of offering Incentive Stock Options or Non-qualified Stock Options to Employees?
I remember at one point a startup will switch from offering ISO (Incentive Stock Options) to offering Non-qualified Stock Options (NSO) to employees?
Can the startup decide which to offer, and what ...
2
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4answers
2k views
Incentive Stock Options (ISO Pool) - How much to earmark?
Based on your experiences, I'm wondering if any of you had any advice on the percentage can I expect to earmark for ISO pool when incorporating? 10%? 15%? 20%?
Thanks!
2
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3answers
998 views
Amount of vesting equity for #3-#4 employee?
Given a startup with 2 founders (one technical and one not-so) that's received VC funding (few millions).
How much vesting equity (%) should the next couple of developers recruited expect?
I've ...
3
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3answers
821 views
Founder's Stock - Class F Common
I've first heard of this special class of stock through The Founder Institute. It's basically a way for founders to protect from dilution by authorizing both Common stock and a special Class F (for ...
