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They're also used by US companies for foreign employees and contractors. Tons of people, even non-executives, at later stage companies hit the $100,000 ISO limi
by erichurkman 9y ago
They're also used by US companies for foreign employees and contractors. Tons of people, even non-executives, at later stage companies hit the $100,000 ISO limitation just due to high valuations, too.
[Over 25% of the stock grants that we track are NSO, and most of those are not executives or directors. Disclaimer: I work at Carta, fka eShares, and we track a lot of grants.]
- sulam 9y agoIs it possible that you have a biased view of the options that are out there? I have never received NSOs and don’t know any non-executive who has, after 9 startups, two of which were definitely late stage (they went public) and one of which arguably was (acquired for over $100M). This bill would’t have changed my compensation at all of the startups where I’ve worked except for one aspect — the removal of AMT. Honestly we have way bigger things to be worried about in this bill, even if you focus narrowly on issues startups have. For instance, removing the individual mandate likely means the ACA health care market will collapse. This will make it less likely that people who need healthcare coverage will be able to start companies. I’d love to see the startup community up in arms about THAT.
- erichurkman 9y agoThe 25% figure was across about half a million grants, so there are a lot more NSOs than you'd expect.
- sulam 9y agoWhat's that work out to in people? And maybe more interestingly, is the percentage of people getting NSOs lower than 25%? I bet you get a lot of frequent fliers, and the ones getting NSOs seem like they'd a big percentage of the platinum fliers in your service.