I got an offer from C3.AI 1 month before the IPO in December. I have stock options of 30,000 share vested over 5yr. And I am scheduled to join late January. How does that option translate to post IPO? Does that translate to RSU directly so I will just be granted 6,000 shares per year which will make me a millionaire? Or will it be options to purchase at a discounted price? I have not joined so don't have internal contacts / resources to ask about that.
All comes down to the option strike price
I thought they had 6-1 stock split around the IPO. So u'd only have 5k shares now over 5 years.
Oh dear, R2, by my calculations that will be worth $745,926.21.
How did you calculate?
Wow fuck me for not going to a pre ipo company lol
I was not able to find information on the strike price. But I assume it should be pre-IPO valuation yes?
No because it's tied to grant date. It's NEVER pre IPO price after the IPO. Strike price was likely high--if you dig through the S1 you can find the last strike price on the exec grants. Needless to say NO ONE just gives you RSUs 1:1. Even in black scholes, options normally translates 2:1 to RSUs. So take your options, divide by 6 for reverse split and then divide by 2 for RSUs. That should at least give you a ballpark. (This assumes reverse split happened, I didn't read the filing carefully because I have friends who used to work there and consider it all Tom Siebel hype and little substance)
discounted how? your option is not *granted* until the board approves which is some time after you start working. strike price *must be* at current FMV. in a public company, FMV is the ticker price. your options will be struck at the price on the day they are granted. i would normally consider this very very *very* much worse than RSUs, for an ordinary employee.but for 30k options, if the stock doubles over 5 years, youâve made $4mm. call me crazy but i doubt youâll get an RSU offer like that. why canât you contact recruiter?
That doesn't make any sense if the strike price is ticker price. Why would I need my vested option to buy stocks? It is now traded publicly.
itâs an option to buy. not equity. if it goes underwater you lose nothing. so itâs far superior to buying on market. this normally only is offered to execs after being public.
There was a 6-1 reverse split, so definitely divide your stock grant by 6
i wouldnât say definitely. they can certainly opt to avoid dissatisfaction by sticking with the offer as written. EDIT: yeah definitely. there is no way they are going to suddenly 6x the offer
What's your strike price. Let's assume your strike price was $30. Today's rate is $130, so you get $100 per share, after a year if it's $180, you can sell exercise your stock options with 6000*30=180,000 and then sell it for 180*6000=1080000, so you gained about 800K after that year. BTW, what strike price did you get and congratulations.
am i the only one that has reading comprehension? he didnât get a grant yet and doesnât have a strike price yet
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Nothing should change, you vest as normal and get to keep the options. So if your options are for 6k shares a year, then yes - youâre a millionaire assuming the price doesnât drop by the time you vest and your strike price is low.