5 ms·
This article from 10 days ago claimed that most employees have a $15 strike price: https://www.theinformation.com/soon-free-to-sell-few-snap-employees-have-stoc
by nextstep 9y ago
This article from 10 days ago claimed that most employees have
a $15 strike price: https://www.theinformation.com/soon-free-to-sell-few-snap-employees-have-stock-profits https://www.theinformation.com/soon-free-to-sell-few-snap-em... (paywall).
Can anyone confirm that most late Snap employees unlikely to exercise options anytime soon?
- deleted 9y ago[deleted]
- acchow 9y agoI don't know where they can get their figures. $15 sounds a bit high for a median. The average tho is in the S-1: $2.33. Maybe the average is heavily skewed downwards by some very cheap penny options?
- mhmiles 9y agoI have to believe it’s heavily skewed with older huge grants to higher ups
- awa 9y agoMost late employees got generous RSU's instead of options.
- nextstep 9y agoOnly to employees hired post IPO though, correct?
- ng12 9y agoNo, they've been granting private RSUs for at least a year before.
- rrdharan 9y agoWhy would it be restricted to post-IPO employees? It's pretty common to get RSU grants at a startup pre- or post-IPO. Typically you can negotiate the mix. Source: have received and negotiated on offers within the last three years from "name-brand" pre-IPO startups.
- rrdharan 9y agoLarge portions of these grants are likely to be in the form of RSUs rather than options. I find the whole "underwater" narrative less compelling for this reason (RSUs are never under water).
- tedunangst 9y agoBut presumably the employee had to pay a load of taxes on the RSU, no? I don't think SNAP is down so much yet, but you could end up with a very large loss, which is difficult to write off if you don't have other capital gains. Yes?