I want to know how TC should be calculated when at a startup. Here's an example:
Equity: 40,000 shares (let's say strike is $1, valued at $2)
Is TC calculated as:
1) $100,000 + $20,000 ($2 value * 10,000 shares vested/year = $120,000?
2) $100,000 + $10,000 (($2 value - $1 cost) * 10,000 shares vested/year = $110,000?
3) Another way?
Disclaimer: these aren't real numbers, just an example for ease of calculation
Shares don’t matter unless you get bought out or go public. And I don’t think Affirm is anywhere close to being public(?).
As for strike price, if you do go public, it would be the $value at grant-$1 per share.