I know Netflix gives all cash offers. Was just wondering...do they also give stock as an annual bonus or no stock to employees at all?
You get 5% of your base salary as options. So if you make 500k then you would get $25k a year in options. They also let you allocate as much of your salary as you want towards options, and the options have pretty favorable terms since they have a 10 year expiry. Their benefits site actually lays it out pretty well. https://benefits.netflix.com/united-states/financial
Ahh duhh why didn’t I look there. Thanks
5% free option has been removed. You can still buy though.
No stock bonus; you have the option of diverting part of your pre tax income to buying stock options. You select a yearly amount and they will take 1/12th of that every month and purchase stock options on the 1st trading day of the month. The strike price is the price for the day, the cost of the option is 40% of the strike price and the options are fully vested, good for 10 years whether or not you continue your employment with netflix. If you believe in the growth of the stock, it’s a great plan.
Wow this is very interesting. The fact that you can use pretax money is insane. So you pay 40% of the strike price, and then if you exercise you pay the rest? I’m not sure if I understand why one would buy the options but not exercise.
When you exercise, you pay the whole exercise price. Which begs the question, why do this? If you think Netflix stock is a good investment, why not just buy the stock directly? Sure, you’ll lose more money if the stock doesn’t pan out, but 40% is a large premium for the option of buying at 100% of today’s stock price sometime in the future.