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It's not just the exercise price, it's the tax bill at the end of the year...
by a_small_island 10y ago
It's not just the exercise price, it's the tax bill at the end of the year...
- YuriNiyazov 10y agoIf you exercise upon getting hired, there is no tax bill, because there is no spread between FMV and your exercise price. There's only a tax bill later, upon liquidation.
- scurvy 10y agoMany (if not most) early stage companies won't allow you to do this. They claim that the "legal costs" are too high. When asked how much it is and offered to cover them, I've been met with blank stares.
- YuriNiyazov 10y agoI've been met with "but if you quit without having vested all your shares, we'll have to pay you back at FMV!" - and this was a CEO that said this. Staggering ignorance w.r.t. equity.