How stock options affect after company decides to split or give bonus?

Jul 13, 2017 4 Comments

For example, during hire company told it allocated 25k worth stocks each year for next four years(2016-2019). Considering $100 per stock it means company kept aside 250 stocks for me.

Lets say company gives bonus in 2018. Does this number 250 change when company decides to split or give 1:1 bonus?

Is this q making sense or I am totally off?

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TOP 4 Comments
  • Your options are affected by the split accordingly. If there's a 2x split and you were given options for 500 shares, you now have options for 1000.
    Jul 13, 2017 0
  • If Offer Letter says stock grants, it means what ggyo88 you said is what I believe should happen.
    Jul 13, 2017 0
  • Microsoft doesn't do options any more. You get stock grants. And yes, if the stock splits (highly unlikely these days) then you'll get your forthcoming grants adjusted accordingly. Using your example, your 250 stocks (even the ones that you have yet to receive) would turn into 500 if there's a 2:1 split.
    Jul 13, 2017 0
  • Google / Eng
    SMDj70

    Go to company page Google Eng

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    SMDj70
    It should be explained in your employment contract. Stocks goes up and down as well so I don't know how it is calculated in this scenario as well. Do they give less shares of value goes up? If yes, you probably have your answer
    Jul 13, 2017 0