Friend received offer for 500k. Is there a limit per year of how much stock option I can exercise?
you can elect to receive 0-100% of your base as options. no rsus.
AFAIK you can elect to purchase options using 0-100% of base. These are heavily discounted 10 year expiry options. Not the traditional ones you find on Robinhood.
Doesn’t this mean all Netflix employees are really getting 2-3x their listed tc?
Well A: employees have to decide to use them or not and B; the stock needs to go up a certain percentage for them to be worth anything
https://blog.myrawealth.com/insights/a-guide-on-netflixs-benefits-program#:~:text=Netflix%20automatically%20provides%20free%20stock,stock%20options%20are%20NOT%20stocks. Note Netflix no longer gives 5% free options
I did more reading as well. Seems like the stock options are really risky. You basically are leveraged 2.5x what you would get from the equivalent purchase of stock. but your break even requires the stock price to increase 67% or so. This means you’d want to hold onto the options as long as possible ti maximize the stock option gains. So you basically have to be ok with having that cash locked away for 3-5 years.
Analysis: https://graystoneadvisor.com/blog/netflix-supplemental-stock-options
And therefore it offers you full cash comp and an opportunity to not have to deal with that drama. End of story
As far as I know Netflix provides full cash compensation. No rsus.
It is all cash, but they also give you the choice to trade cash for options (not RSUs) which have leveraged upside.