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Isn’t the whole point of options really to keep people from quitting? You don’t have to pay a tax bill unless you exercise them, but if you wait for your compan
by henriquez 5y ago
Isn’t the whole point of options really to keep people from quitting? You don’t have to pay a tax bill unless you exercise them, but if you wait for your company to get acquired you’ll get cashed out for a net positive (assuming your shares are “in the money”)
- wmf 5y agoThen why have vesting as well?
- TechBro8615 5y agoBecause the cliff keeps them from quitting during the first year. If there was no cliff and vesting started immediately, the exercise window wouldn’t help much, since there would hardly be any options to exercise. But after the cliff, since 25% have vested, suddenly the exercise window becomes a reason not to quit.