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The value is precisely defined by a 409a valuation. That's the price options are offered at (the strike price) and what the FMV is.
by tyre 5y ago
The value is precisely defined by a 409a valuation. That's the price options are offered at (the strike price) and what the FMV is.
- 6gvONxR4sf7o 5y agoAren’t 409a valuations famously gamed?
- ardit33 5y agoIt is a bogus valuation... as it is not market based. If you can't sell the stock, and nobody wants to buy it, (yes, there are startups that are in this position), then that valuation is mostly wishful thinking. Often the valuation undervalues the company as well, but that's another story.
- lupire 5y agoThat's the value when the valuation happens, which can be years before exercise.