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Always consider stock options to be worthless.
by daveguy 1y ago
Always consider stock options to be worthless.
- deleted 1y ago[deleted]
- lurking_swe 1y agoThat’s too broad of a statement. For a startup, YES, i agree. It may end up at $0 if the company goes bust. And that’s very common - especially in tech. However there are some publicly traded (and fairly large) companies that have been around for a while, that also offer stock options (NQSOs) to their employees. Typically they get to choose between RSUs, NQSOs, or a mix. In these cases options are not worthless because the risk of the company going bankrupt is very slim.
- daveguy 1y agoYeah, I was going to go into all that crap, but they're all still just options to buy at whatever market price you start at. Market go up. Market go down. Just consider stock options to be worthless when negotiating. I'm not saying don't accept them, just don't factor them in as "compensation". Factor them in as chips already laid on roulette table, at best.