Hello all, how common is it for a public company which IPO'd very recently to offer stock options and not RSU's. The thing is the recruiter says the strike price is decided post hire 🤷♂️ Have any of you encountered such scenarios? How should I handle the compensation negotiations give the above details ? I will update the post with the more details once I have the numbers. Thank you
The law requires the strike price to be determined after you join. Companies used to give in the money options during the dot com boom. That all blew up and laws were passed setting the price at or above market at time of hire. Usually, there is a board committee that has to approve the options, they tend to approve them in batches, quarterly for example.
@op - is it Uber? The other 2 companies you tagged are not public.
How is this any different than buying stock in the open stock market 🤷♂️
Pretty common. Many companies offer stock options instead of RSUs.
Public companies do that ?
Yes...