Total grant given: 110K vesting over 4 years Options: Straight up cash (u loose 10% of the value eg i would get 100k if i chose cash), RSU, Stock options at x4 the grant (e.g. I would get 440k in options), Stock options at x8 the grant (880k) For all choices, exercise price will the the market price of SPOT on the day i receive the grant, except for x8 option it will be 150% of the market price. You make money from these options if the stock price appreciates over 35% and 65%, respectively, compared to the exercise price basically. Anything less than that, you make 0. I can choose a mix of 2 choices, eg 50% cash & 50% RSU or 25% x4 options and 75% RSU. The split has to be in increments of 25 (25,50,75 or 100). What do you suggest i choose? I am in my early 20s, so not afraid to take a bit of risk for a higher reward though the x8 option is a bit too risky for my liking. I was thinking 50% RSU & 50% x4 Options but really want to hear what others think.
the longer you wanna stay the riskier the mix could/should be. this assumes that you believe in the company and the roadmap
Personally, I’d do 100% RSU
What did u select for urs?
what split did you end up choosing OP?
Yeah wondering the same - did you make your decision OP? I’m in the same boat and leaning towards 75% RSU, 25% Cash
This is late, but I'd probably go with 50% RSUs and 50% at-the-money NSOs. This article has some good detail and even has a calculator to help run scenarios. https://www.equityftw.com/articles/choosing-the-right-spotify-incentive-mix
I’d say 100% cash and reinvest, it’s only a 10% difference to RSUs and you wouldn’t go out and buy 100k worth of stocks based on a 10% discount.
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I will do 50 RSU and 50 8x grant
Why do u prefer 8x over 4x? :) U believe Spotify will really grow that much in the next 5 years? Keep in mind that if i leave the company, i have to exercise my options in 90 days max. Meaning if spotify stock price hasnt grown over 64% by the time i leave, i am leaving money on the table!