3 ms·
Unless you are a founder, awarding stock to employees has two ramifications in the US: 1. It is considered compensation, so it is taxable. Employees don’t lik
by jschveibinz 4y ago
Unless you are a founder, awarding stock to employees has two ramifications in the US:
1. It is considered compensation, so it is taxable. Employees don’t like digging into savings to pay taxes.
2. It is difficult to value and is dilutive to investors at a time they don’t want to be diluted.
Options are typically tied to an event, like an acquisition.
Usually, the investors and founders have leverage in the deal which in turn pays for the options.
Good luck!
- roflyear 4y agoDefinitely not tied to any event in this case.