4 ms·
I'm surprised people don't take the time to figure out what the options actually mean and negotiate some of the terms. When I have negotiated with startups I ha
by Teodolfo 11y ago
I'm surprised people don't take the time to figure out what the options actually mean and negotiate some of the terms. When I have negotiated with startups I have paid for legal advice to help me figure out what language I needed in the option agreement (for example, a pinterest-style clause that prevents me from having to exercise within 3 months of leaving) and negotiated for the terms I felt were important. Just because the agreement is written to give you ISOs doesn't mean they will qualify for ISO tax treatment when you eventually exercise, so it is better to let you give up ISO treatment and convert to NSOs in order to avoid having to effectively forfeit vested options upon departure from the firm or face massive tax consequences. The pinterest-style structure should be standard.
- ap22213 11y agoJust curious, how difficult was it for you to find a qualified attorney, and how much did you spend? (I tried this approach once, but the legal advice was low quality and very basic.)
- gkop 11y agoA friend referred me to an attorney at a well-known SV firm. She gave me a free consultation back and forth over email. By my own judgement as well as that of the founders and attorneys of my new company, the advice was good. It covered both my negotiation with the company as well as my personal tax planning and accounted for various possible outcomes. Following the advice, I learned more of the nitty gritty financial details of the company, got a calculated split of ISOs and NSOs (to early exercise), and also a decent cash bonus.