Waymo options vs Stock (WMU)

Apple
B-lind

Go to company page Apple

B-lind
Sep 24, 2018 11 Comments

Recently got an offer form Waymo. They seem to offer WMUs (which seem like RSU) and Options both of which vest over 4 years. Looking for help with several questions:

1. How are options and WMUs different ? Do I have to pay the company the strike price (out of my base salary) to exercise the options as opposed to WMUs that one gets for free on vest date ?
2. Is the price for options locked closest to day of award or vest or exercise ?
3. Both seem to be valued currently at $11. Is it possible to find out what valuation the company used to come up with this number ? It’s kind of hard to estimate (speculate) the upside without that.

Thanks

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TOP 11 Comments
  • Google
    odhwy44

    Go to company page Google

    odhwy44
    You're supposed to post with offer details. This is blind.

    1. Yes. Edit: sort of. They're not actually options, but more like appreciation rights on units. But the concept that they're worth $11 less than a unit if and when there is a liquidity event is true.
    2. Award, which is not the day you sign your offer (if you do, lol, man, waymo offers are bad)
    3. You might be misunderstanding options. Options are worth at most the underlying. But no, they won't tell you why the unit price is $11, even if you become an employee. They won't even tell you how many shares there are.
    Sep 24, 2018 6
    • New
      iOS_12.1

      New

      iOS_12.1
      How is the 11$ value determined? Is it based on pre-IPO valuation?
      If it is based on some valuation process, when/how often does this valuation take place?
      Dec 27, 2018
    • New / Eng
      MSFT_fte

      New Eng

      MSFT_fte
      What IPO? Can waymo ipo?
      Dec 27, 2018
  • New / Eng
    poRd04

    New Eng

    poRd04
    TC or GTFO
    Sep 24, 2018 1
  • With RSUs you make money regardless of how the company performs. With options you only make money on the growth of the company. I’d go for RSUs all day long. Not sure about WMU
    Sep 24, 2018 0
  • New
    TruIdiot

    New

    TruIdiot
    The strike price is not the price quoted on secondary market otherwise you will value them at zero. Usually strike price is 20-30% of the value per share a the last financing round. So you will make money even if company value goes down in future but that is only if they IPO.
    Sep 25, 2018 0