Pre-ipo company options/rsu

Apple
PFyE38

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PFyE38
Feb 24, 2021 28 Comments

Hi,
My wife recently got an offer from Confluent for senior SWE and she has some doubts before accepting it.

Offer details:
Base: 200k/yr
Options: 50k/4yrs (not $50k, 50k options)

We are not very familiar with the pre-ipo options/rsu structure, and have some general questions. Hope to get some insights from blind.

a. For pre-ipo company like Confluent that provides options, before company goes to public, if the employee receives exercised options, is it possible to sell in secondary market like sharepost, equityzen? How is the selling price determined in these marketplace? Hope someone who have done this can share your experience.

b. Recruiter mentioned employee can choose to early exercise the options after join, how does that work?

c. I heard there are certain tax benefits for options, how does that work?

d. She had another offer from Splunk TC: 400k/yr. Financially, is it worth to join a startup like confluent, or is it better to allocate extra 200k to invest on Confluent?

We would really appreciate if you can help answer these questions. Thanks a lot!

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