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Generally I think the trade is that you can keep the stock if you quit but you don’t have stock. You have options that expire if you quit, so if you want the st
by dan-robertson 6y ago
Generally I think the trade is that you can keep the stock if you quit but you don’t have stock. You have options that expire if you quit, so if you want the stock you must pay a lot of money to exercise the options, and you then pay tax based on gaining a high value of stock (potentially more tax than you could afford) even though its real is quite undetermined.
- skrebbel 6y agoIn other words, the company takes your shares if you quit. The solution is to put the option strike deadline at 10 years in the future which is iirc what YC recommends. It's possible for these terms to be employee-friendly.