Redfin
I have some redfin stocks vested. But they are stock options and not stocks awards. Can someone help me figure out if its a good idea to convert them during ipo? I also keep reading about strike price. How can I find about strike price on my options?
pricing options involves lots of variables. strike price should have been given to you by management along with expiration date. If the options are in the money or close to the money and expire years from now they could be worth a lot. If they can't be sold, exercised, or converted then they're worthless. Corps try to keep strike price secret because they think employees are too stupid to realize the options they got are out of the money and worthless.
I believe you are (slightly) confusing an American style option and an Incentive Stock Option, which is what OP has. Incentive stock options are always granted at the precise value of the company at the time of issuance (as determined by the board w outside council). They can BECOME out of the money -like in the case of Cloudera recently- but can't be granted that way. Also, expiry date on ISO is nearly always ten years in the future so unless OP is super early Redfin employee it's not a concern yet. OP, there are serious tax considerations to consider before you exercise as well, even before IPO. Spend the $500 and talk to a good accountant before you do.
I have wiped my proverbial ass with out of the money options for decades. If the board and their hired friends decide the "value" of a private company then they set the strike price. Execs will find a way to do whatever they want.
When is redfin expected to go public ? Year end ? Next year ?
OP - you should be able to view all that information in your HR software portal. You can also hit up the team that manages the process and they will provide that for you with a quick turnaround
Um. You should know your strike price from your original options agreement. Strike price shouldn't have changed unless there was some kinda split. Also depending on when Redfin goes public you should consider exercising it earlier to get long term cap gain taxes. i don't think the ipo will do very well, so don't hold and watch it fall.
If the stock is going to fall on IPO the OP should absolutely not exercise. If they do they could owe a massive tax bill without the money to pay it.
Also, most companies have a six month lockup on IPO. You know all those SNAP employees that thought they had just hit the lotto? Uh uh. They haven't sold a dime yet.
OP how do you like working for Redfin? I'm evaluating it as a potential next job
What role? Real estate operations or tech side? Both have different culture
Tech side. Appreciate it!
Me too.. wondering what their pay scale is like for a Sr SWE with 8yrs of experience. My interview was good so expecting an offer. Any idea on how much stock they give?
They pay below other companies in the valley/sf. They couldnt match any of my offers a few years ago
@jasonbourn did you get an offer? Do you mind sharing the numbers?
Check your documentation/contract that your employer provided you. The documentation will have the strike price listed. Not much you can do until the company goes public though.