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I used to work for a pre-IPO startup that had experienced a pretty big run-up in their stock price. As a result, their new hires were getting options to buy 200
by RyanGWU82 12y ago
I used to work for a pre-IPO startup that had experienced a pretty big run-up in their stock price. As a result, their new hires were getting options to buy 200 shares at $100 per share. (I made up those numbers, but you get the idea.) They did a big stock split partly to change the numbers in stock option offers. Apparently it was much more enticing to offer candidates options for 2000 shares at $10 per share. Even though the options would have the same total value, they believed candidates would respond much better to an offer of "more options."
- ghshephard 12y agoThat's a very interesting and insightful angle - If Apple is handing out $50,000 worth of RSUs to new hires vested over 4 years, then currently new hires get 100 shares. While, in theory, a new employee should be fine with 100 shares or 700 shares, human emotion being what it is... Though -on the flip side - I'm wondering if an employee of any merit has decided not to work for Apple because they got "100 $500 shares" instead of "700 $71 shares"