So, about six months back WeWork switched from options to RSUs for new hires. Does anyone know how they came up with the strike price for the options? How’s internal morale over there? Is everyone pissed? Concerned?
Some people who got options are pissed. No word on if there will be conversion.
Strike price is usually cheaper than IPO price. Usually.
In this case.... I’m wondering if that will be the case. ;)
Else it's worthless lol
Strike price for options is typically based on grant date. So... Those options are likely already priced, should all be below IPO price assuming no huge down round, and the exact value would be based on when the individual's option grant was approved by the board. People are probably pissed because the RSUs will be worth whatever the IPO price is, while their options will be worth IPO price minus the strike price. Given recent news, it is worth noting that folks who had options granted after the most recent rounds of fundraising are likely underwater (strike price higher than IPO price).
Why are you asking now even though they don’t offer options anymore.
Because I’m curious if the strike is set at the IPO price or some other number. Heard a theory that it might be an advantage for insiders to get a lower IPO price if strike price is set based on IPO price. That, and I’ve accepted an offer there and am starting soon. Trying to get a read on internal morale.