I am in process of negotiating offer. Current offer base = 215k, 20% bonus, 200k RSU / 4 year vesting period. New offer base = 250k, bonus 20%, stock options (details still coming) Would you go for stock options, given a biotech company that can either take off or not. Chances of it going well are high for right now.
Not directly relevant to your question, but is this the comp. for a director role at Abbvie..? Thanks.
Well remember, with options you only make money on the difference between strike price (price paid) and the market price, if market price is higher. So you’re only making money on the delta. Whereas with RSUs you are granted the stock, so you get the full value of it. You still benefit if the stock goes up, and the amount you have in your pocket is greater. Honestly I don’t understand why anyone would take options as comp. First the stock had to hit strike price and then it had to go up even further, so there are a lot of conditions that make be satisfied to make any decent money. Am I missing something?
If the company does IPO it's unlikely to dip below strike price even with a 40% post-IPO downswing. FMV is always purposely undervalued and should always be 2-5x lower than preferred price which should also be lower than IPO price
I was assuming the company they were asking about was already public. If pre IPO then agreed, stock options are still likely to pay off. But if already public I’m not sure.
There are also tax implications with RSU
High things go up in smoke. Wait what?