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Those scenarios aren’t remotely identical. Consider the difference if the employee quits or is fired before vesting their options. Consider the difference if
by valuearb 6y ago
Those scenarios aren’t remotely identical.
Consider the difference if the employee quits or is fired before vesting their options.
Consider the difference if the company is sold for less than the strike price of the options.
- nostrademons 6y agoA lot of FAANGs are moving to using RSUs rather than options and eliminating the vesting cliff. They really are identical in that case. Then again, the companies that are doing so are generally the ones using GAAP earnings and including SBC. Companies still using options are often private, which means that Scenario B isn't even an option for the general public, and the only way for a non-accredited investor to own stock is to work for them.