Am I being scammed if I joined a company for some months, my stock options were not granted, company goes public with spac merger and I am given RSU but at 40% of the number of stock options stated in offer letter If I’m being scammed, what’s the expected way a company handles such a scenario? What can I do?
You have to spend money on options so have you factored that in? It’s just a right to buy shares at a reduced price.
Not reduced price, fixed price. Depending on how the company does that price can be higher than the current market price...
True, but then you wouldn’t exercise it and you would be left with worthless options.
It's called dilution and you gotta be wary of it
40% as many or 40% of the value? Assuming you mean value, this is probably good. To profit 40% from an option, the value has to increase 40%. But RSUs are usually an outright grant, so its entire value is profit to you. You basically just made a 40% return on your options without the hassle of tying up a bunch of your own money to exercise them. Sounds pretty good after just a few months at a company! You are only being scammed if those the shares you had an option to buy for $100, for example, were valued significantly higher than $140 during the acquisition.
What was the strike price? Stock options is the option to buy at a certain price. If you have 100 options and they are worth $1 each. If the strike price is $0.60, then at the end you have $40.
They said strike price will be finalized after the board of directors fold their meeting to give the stock options. But the meeting never happened
AFAIK the strike price is around $13, but why is strike price higher than spac price that is around $10?