Netflix 5% options -- how does that work?
Is it 5% of every paycheck, one-time grant equal to 5% ? 5% annually?
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Lockheed Martin Schz Dec 7, 2019
What is the strike price of the options ?
Netflix televisor Dec 11, 2019
Stroke price is stock price. 40% premium.
Netflix beebox Dec 7, 2019
Here’s how it works: say you make 100k a year, Netflix gives you (100k * 5%) / 12 value of options every month, and each option is at 60% discount, so you get (100k * 5%) / (12 * stock price on the first trading day of that month *40%) options every month
Lockheed Martin Schz Dec 7, 2019
So you’re saying the exercise price is 40% of the current stock price?
Netflix beebox Dec 7, 2019
No, exercise price is the price when the options are granted to you, it’s just when the company calculates how many options to give you, it puts a 60% discount on the stock price so that you get more.
5% every year and it’s vested per month so the number of options per month changes based on the stock price
5% of what?
Salary...