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When the options expire do they give new equivalent ones to the employees that hung on? Otherwise what’s the point?
by SilverElfin 10mo ago
When the options expire do they give new equivalent ones to the employees that hung on? Otherwise what’s the point?
- pastel8739 10mo agoYou can exercise the options before that time is up, paying the strike price to convert them to shares
- SilverElfin 10mo agoBut then you’re potentially stuck with worthless options you can never trade, right? Seems very unfriendly to employees
- seattle_spring 10mo ago> Seems very unfriendly to employees Ding ding ding ding ding! Most ICs figure this out sooner or later. Unfortunately many only discover it after being screwed hard financially.
- singron 10mo agoYou have to exercise the options or let them expire. You normally have 10 years not 7, but if a company comes up on 10 years after they issued their first options, they might try a tender offer to buy some employee shares. If your 10 year old "start up" shares can't be sold anywhere, then they probably aren't worth exercising. A company that can't provide liquidity to employees for 10 years will probably never do it.