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A (somewhat) secret: lots of employees don't/can't exercise, returning options to the pool. Hell, just last week someone was on HN discussing walking away from
by x0x0 11y ago
A (somewhat) secret: lots of employees don't/can't exercise, returning options to the pool.
Hell, just last week someone was on HN discussing walking away from $0.5m because he couldn't afford to exercise when he left an employer that was later sold.
- vehementi 11y agoWhy can't they take out loans for that purpose? Seems like free money for a bank
- x0x0 11y agoAt the required decision time, the employee often has no idea how much or when a company will be worth money. Plus the obvious risk that someone fucks up and the company is worth a lot less than planned.
- ryandrake 11y agoSo he didn't really "walk away from $0.5m". He walked away from a piece of paper that may or may not be worth $0.5m in some unknown time (or never) in the future.
- x0x0 11y agoHad he been able to exercise he would have received that half million
- FireBeyond 11y agoThen and there? Then yes, no doubt he would have been able to get a loan from somewhere to cover this. He'd have had to eat some interest, perhaps. If not, then the parent's point - a ninety nine per cent "sure bet" is still not a one hundred per cent guarantee.