Mixing
Is this this stock option offering good, bad or decent? [closed]
Clash Royale CLAN TAG#URR8PPP
.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty margin-bottom:0;
up vote
-4
down vote
favorite
I live in the US. This company has ~200 people working for it. Relative to my current salary, I'm getting a very nice increase. I would be hired as a Senior Software Engineer. I can see this company being very financially successful, and in a lot of ways it already is. They've been around for over 5 years.
There are ~100 million shares outstanding. The offer is for 5000 options. I'm not sure what the strike price is, because they weren't willing to tell me when I asked.
I feel like this is a pretty bum deal because if the company gets acquired for 100 million dollars, I'll make something like 5000 dollars. If they get acquired for a billion dollars, I'll make something like 50,000 dollars. I asked for 100k minimum (about .01%) and they were only willing to go as high as 10k, which isn't much better.
So I'm pretty unhappy about this offering, but I may be looking at it in wrong way. Given variables like number of employees, position, outstanding shares, etc. how can I tell if I'm getting a good deal, a bad deal or a decent deal when it comes to stock options?
job-search salary job-offer negotiation
asked Sep 3 '14 at 2:26
jonathan dorthy
1
closed as primarily opinion-based by Jim G., Vietnhi Phuvan, mhoran_psprep, jmort253♦ Sep 3 '14 at 5:32
Many good questions generate some degree of opinion based on expert experience, but answers to this question will tend to be almost entirely based on opinions, rather than facts, references, or specific expertise. If this question can be reworded to fit the rules in the help center, please edit the question.
suggest improvements |Â
up vote
-4
down vote
favorite
I live in the US. This company has ~200 people working for it. Relative to my current salary, I'm getting a very nice increase. I would be hired as a Senior Software Engineer. I can see this company being very financially successful, and in a lot of ways it already is. They've been around for over 5 years.
There are ~100 million shares outstanding. The offer is for 5000 options. I'm not sure what the strike price is, because they weren't willing to tell me when I asked.
I feel like this is a pretty bum deal because if the company gets acquired for 100 million dollars, I'll make something like 5000 dollars. If they get acquired for a billion dollars, I'll make something like 50,000 dollars. I asked for 100k minimum (about .01%) and they were only willing to go as high as 10k, which isn't much better.
So I'm pretty unhappy about this offering, but I may be looking at it in wrong way. Given variables like number of employees, position, outstanding shares, etc. how can I tell if I'm getting a good deal, a bad deal or a decent deal when it comes to stock options?
job-search salary job-offer negotiation
asked Sep 3 '14 at 2:26
jonathan dorthy
1
closed as primarily opinion-based by Jim G., Vietnhi Phuvan, mhoran_psprep, jmort253♦ Sep 3 '14 at 5:32
Many good questions generate some degree of opinion based on expert experience, but answers to this question will tend to be almost entirely based on opinions, rather than facts, references, or specific expertise. If this question can be reworded to fit the rules in the help center, please edit the question.
1
Your question is very subjective. Some would be happy with the deal. Some wouldn't. For the exact same reason, which is the amount you're given. I am voting to close the question as opinion-based.
– Vietnhi Phuvan
Sep 3 '14 at 3:05
"Relative to my current salary, I'm getting a very nice increase" - then it's a good deal. You should never assume stock options are going to be worth anything other than zero dollars. Anything they turn out to be worth, that's a bonus.
– Carson63000
Sep 3 '14 at 4:52
1
Hi Jonathan, we can't really tell you what would be a good deal for you. That would totally depend on your unique situation, which can't be answered in Q&A format. Instead, you can try a discussion forum. See help center for details. Hope this helps.
– jmort253♦
Sep 3 '14 at 5:33
suggest improvements |Â
up vote
-4
down vote
favorite
up vote
-4
down vote
favorite
I live in the US. This company has ~200 people working for it. Relative to my current salary, I'm getting a very nice increase. I would be hired as a Senior Software Engineer. I can see this company being very financially successful, and in a lot of ways it already is. They've been around for over 5 years.
There are ~100 million shares outstanding. The offer is for 5000 options. I'm not sure what the strike price is, because they weren't willing to tell me when I asked.
I feel like this is a pretty bum deal because if the company gets acquired for 100 million dollars, I'll make something like 5000 dollars. If they get acquired for a billion dollars, I'll make something like 50,000 dollars. I asked for 100k minimum (about .01%) and they were only willing to go as high as 10k, which isn't much better.
So I'm pretty unhappy about this offering, but I may be looking at it in wrong way. Given variables like number of employees, position, outstanding shares, etc. how can I tell if I'm getting a good deal, a bad deal or a decent deal when it comes to stock options?
job-search salary job-offer negotiation
asked Sep 3 '14 at 2:26
jonathan dorthy
1
I live in the US. This company has ~200 people working for it. Relative to my current salary, I'm getting a very nice increase. I would be hired as a Senior Software Engineer. I can see this company being very financially successful, and in a lot of ways it already is. They've been around for over 5 years.
There are ~100 million shares outstanding. The offer is for 5000 options. I'm not sure what the strike price is, because they weren't willing to tell me when I asked.
I feel like this is a pretty bum deal because if the company gets acquired for 100 million dollars, I'll make something like 5000 dollars. If they get acquired for a billion dollars, I'll make something like 50,000 dollars. I asked for 100k minimum (about .01%) and they were only willing to go as high as 10k, which isn't much better.
So I'm pretty unhappy about this offering, but I may be looking at it in wrong way. Given variables like number of employees, position, outstanding shares, etc. how can I tell if I'm getting a good deal, a bad deal or a decent deal when it comes to stock options?
job-search salary job-offer negotiation
asked Sep 3 '14 at 2:26
jonathan dorthy
1
asked Sep 3 '14 at 2:26
jonathan dorthy
1
asked Sep 3 '14 at 2:26
jonathan dorthy
1
asked Sep 3 '14 at 2:26
jonathan dorthy
1
1
closed as primarily opinion-based by Jim G., Vietnhi Phuvan, mhoran_psprep, jmort253♦ Sep 3 '14 at 5:32
Many good questions generate some degree of opinion based on expert experience, but answers to this question will tend to be almost entirely based on opinions, rather than facts, references, or specific expertise. If this question can be reworded to fit the rules in the help center, please edit the question.
closed as primarily opinion-based by Jim G., Vietnhi Phuvan, mhoran_psprep, jmort253♦ Sep 3 '14 at 5:32
Many good questions generate some degree of opinion based on expert experience, but answers to this question will tend to be almost entirely based on opinions, rather than facts, references, or specific expertise. If this question can be reworded to fit the rules in the help center, please edit the question.
1
Your question is very subjective. Some would be happy with the deal. Some wouldn't. For the exact same reason, which is the amount you're given. I am voting to close the question as opinion-based.
– Vietnhi Phuvan
Sep 3 '14 at 3:05
"Relative to my current salary, I'm getting a very nice increase" - then it's a good deal. You should never assume stock options are going to be worth anything other than zero dollars. Anything they turn out to be worth, that's a bonus.
– Carson63000
Sep 3 '14 at 4:52
1
Hi Jonathan, we can't really tell you what would be a good deal for you. That would totally depend on your unique situation, which can't be answered in Q&A format. Instead, you can try a discussion forum. See help center for details. Hope this helps.
– jmort253♦
Sep 3 '14 at 5:33
suggest improvements |Â
1
Your question is very subjective. Some would be happy with the deal. Some wouldn't. For the exact same reason, which is the amount you're given. I am voting to close the question as opinion-based.
– Vietnhi Phuvan
Sep 3 '14 at 3:05
"Relative to my current salary, I'm getting a very nice increase" - then it's a good deal. You should never assume stock options are going to be worth anything other than zero dollars. Anything they turn out to be worth, that's a bonus.
– Carson63000
Sep 3 '14 at 4:52
1
Hi Jonathan, we can't really tell you what would be a good deal for you. That would totally depend on your unique situation, which can't be answered in Q&A format. Instead, you can try a discussion forum. See help center for details. Hope this helps.
– jmort253♦
Sep 3 '14 at 5:33
1
1
Your question is very subjective. Some would be happy with the deal. Some wouldn't. For the exact same reason, which is the amount you're given. I am voting to close the question as opinion-based.
– Vietnhi Phuvan
Sep 3 '14 at 3:05
Your question is very subjective. Some would be happy with the deal. Some wouldn't. For the exact same reason, which is the amount you're given. I am voting to close the question as opinion-based.
– Vietnhi Phuvan
Sep 3 '14 at 3:05
"Relative to my current salary, I'm getting a very nice increase" - then it's a good deal. You should never assume stock options are going to be worth anything other than zero dollars. Anything they turn out to be worth, that's a bonus.
– Carson63000
Sep 3 '14 at 4:52
"Relative to my current salary, I'm getting a very nice increase" - then it's a good deal. You should never assume stock options are going to be worth anything other than zero dollars. Anything they turn out to be worth, that's a bonus.
– Carson63000
Sep 3 '14 at 4:52
1
1
Hi Jonathan, we can't really tell you what would be a good deal for you. That would totally depend on your unique situation, which can't be answered in Q&A format. Instead, you can try a discussion forum. See help center for details. Hope this helps.
– jmort253♦
Sep 3 '14 at 5:33
Hi Jonathan, we can't really tell you what would be a good deal for you. That would totally depend on your unique situation, which can't be answered in Q&A format. Instead, you can try a discussion forum. See help center for details. Hope this helps.
– jmort253♦
Sep 3 '14 at 5:33
suggest improvements |Â
1 Answer
1
active
oldest
votes
up vote
5
down vote
You're being offered 0.005% of the company. You shouldn't expect that to be something that you'll build your early retirement on. Maybe if the company goes public and ends up with a Google-esque market cap, but otherwise no.
The fact that they won't tell you the strike price is also a bit shady. Any written options grant will spell this out as a matter of course.
In terms of how good/bad the offer is, a lot of that depends upon information that hasn't been provided. For instance, does your offer include a competitive salary and benefits, or is the options grant being used to justify offering a below-average compensation? Will you be the second senior developer in the company, the 10th, or the 50th? Are you bringing anything special to the table that another senior developer wouldn't? And so on.
Anyhow, as I see it your offer is not atypical given that you're joining relatively late in the game, after the company has established itself, and coming into a relatively mid-level position. You could push for a larger allocation, but in your position I think it would be more advantageous to negotiate for a higher cash salary instead. Even if you get your options allocation increased tenfold you're unlikely to see a huge payday. So make every payday a little larger, instead.
If you really want to play the "get rich quick on company stock" game then you'll have to find (or found) a new startup company and be there virtually from day one. That's how you get the nontrivial allocations and how you set yourself up to profit immensely even from a relatively small acquisition (or IPO). When joining an established company that's been around for several years and has hundreds of employees, you're just not playing in the same ballpark anymore.
answered Sep 3 '14 at 3:53
aroth
8,29812646
suggest improvements |Â
1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
5
down vote
You're being offered 0.005% of the company. You shouldn't expect that to be something that you'll build your early retirement on. Maybe if the company goes public and ends up with a Google-esque market cap, but otherwise no.
The fact that they won't tell you the strike price is also a bit shady. Any written options grant will spell this out as a matter of course.
In terms of how good/bad the offer is, a lot of that depends upon information that hasn't been provided. For instance, does your offer include a competitive salary and benefits, or is the options grant being used to justify offering a below-average compensation? Will you be the second senior developer in the company, the 10th, or the 50th? Are you bringing anything special to the table that another senior developer wouldn't? And so on.
Anyhow, as I see it your offer is not atypical given that you're joining relatively late in the game, after the company has established itself, and coming into a relatively mid-level position. You could push for a larger allocation, but in your position I think it would be more advantageous to negotiate for a higher cash salary instead. Even if you get your options allocation increased tenfold you're unlikely to see a huge payday. So make every payday a little larger, instead.
If you really want to play the "get rich quick on company stock" game then you'll have to find (or found) a new startup company and be there virtually from day one. That's how you get the nontrivial allocations and how you set yourself up to profit immensely even from a relatively small acquisition (or IPO). When joining an established company that's been around for several years and has hundreds of employees, you're just not playing in the same ballpark anymore.
answered Sep 3 '14 at 3:53
aroth
8,29812646
suggest improvements |Â
up vote
5
down vote
You're being offered 0.005% of the company. You shouldn't expect that to be something that you'll build your early retirement on. Maybe if the company goes public and ends up with a Google-esque market cap, but otherwise no.
The fact that they won't tell you the strike price is also a bit shady. Any written options grant will spell this out as a matter of course.
In terms of how good/bad the offer is, a lot of that depends upon information that hasn't been provided. For instance, does your offer include a competitive salary and benefits, or is the options grant being used to justify offering a below-average compensation? Will you be the second senior developer in the company, the 10th, or the 50th? Are you bringing anything special to the table that another senior developer wouldn't? And so on.
Anyhow, as I see it your offer is not atypical given that you're joining relatively late in the game, after the company has established itself, and coming into a relatively mid-level position. You could push for a larger allocation, but in your position I think it would be more advantageous to negotiate for a higher cash salary instead. Even if you get your options allocation increased tenfold you're unlikely to see a huge payday. So make every payday a little larger, instead.
If you really want to play the "get rich quick on company stock" game then you'll have to find (or found) a new startup company and be there virtually from day one. That's how you get the nontrivial allocations and how you set yourself up to profit immensely even from a relatively small acquisition (or IPO). When joining an established company that's been around for several years and has hundreds of employees, you're just not playing in the same ballpark anymore.
answered Sep 3 '14 at 3:53
aroth
8,29812646
suggest improvements |Â
up vote
5
down vote
up vote
5
down vote
You're being offered 0.005% of the company. You shouldn't expect that to be something that you'll build your early retirement on. Maybe if the company goes public and ends up with a Google-esque market cap, but otherwise no.
The fact that they won't tell you the strike price is also a bit shady. Any written options grant will spell this out as a matter of course.
In terms of how good/bad the offer is, a lot of that depends upon information that hasn't been provided. For instance, does your offer include a competitive salary and benefits, or is the options grant being used to justify offering a below-average compensation? Will you be the second senior developer in the company, the 10th, or the 50th? Are you bringing anything special to the table that another senior developer wouldn't? And so on.
Anyhow, as I see it your offer is not atypical given that you're joining relatively late in the game, after the company has established itself, and coming into a relatively mid-level position. You could push for a larger allocation, but in your position I think it would be more advantageous to negotiate for a higher cash salary instead. Even if you get your options allocation increased tenfold you're unlikely to see a huge payday. So make every payday a little larger, instead.
If you really want to play the "get rich quick on company stock" game then you'll have to find (or found) a new startup company and be there virtually from day one. That's how you get the nontrivial allocations and how you set yourself up to profit immensely even from a relatively small acquisition (or IPO). When joining an established company that's been around for several years and has hundreds of employees, you're just not playing in the same ballpark anymore.
answered Sep 3 '14 at 3:53
aroth
8,29812646
You're being offered 0.005% of the company. You shouldn't expect that to be something that you'll build your early retirement on. Maybe if the company goes public and ends up with a Google-esque market cap, but otherwise no.
The fact that they won't tell you the strike price is also a bit shady. Any written options grant will spell this out as a matter of course.
In terms of how good/bad the offer is, a lot of that depends upon information that hasn't been provided. For instance, does your offer include a competitive salary and benefits, or is the options grant being used to justify offering a below-average compensation? Will you be the second senior developer in the company, the 10th, or the 50th? Are you bringing anything special to the table that another senior developer wouldn't? And so on.
Anyhow, as I see it your offer is not atypical given that you're joining relatively late in the game, after the company has established itself, and coming into a relatively mid-level position. You could push for a larger allocation, but in your position I think it would be more advantageous to negotiate for a higher cash salary instead. Even if you get your options allocation increased tenfold you're unlikely to see a huge payday. So make every payday a little larger, instead.
If you really want to play the "get rich quick on company stock" game then you'll have to find (or found) a new startup company and be there virtually from day one. That's how you get the nontrivial allocations and how you set yourself up to profit immensely even from a relatively small acquisition (or IPO). When joining an established company that's been around for several years and has hundreds of employees, you're just not playing in the same ballpark anymore.
answered Sep 3 '14 at 3:53
aroth
8,29812646
answered Sep 3 '14 at 3:53
aroth
8,29812646
answered Sep 3 '14 at 3:53
aroth
8,29812646
answered Sep 3 '14 at 3:53
aroth
8,29812646
8,29812646
suggest improvements |Â
suggest improvements |Â
1
Your question is very subjective. Some would be happy with the deal. Some wouldn't. For the exact same reason, which is the amount you're given. I am voting to close the question as opinion-based.
– Vietnhi Phuvan
Sep 3 '14 at 3:05
"Relative to my current salary, I'm getting a very nice increase" - then it's a good deal. You should never assume stock options are going to be worth anything other than zero dollars. Anything they turn out to be worth, that's a bonus.
– Carson63000
Sep 3 '14 at 4:52
1
Hi Jonathan, we can't really tell you what would be a good deal for you. That would totally depend on your unique situation, which can't be answered in Q&A format. Instead, you can try a discussion forum. See help center for details. Hope this helps.
– jmort253♦
Sep 3 '14 at 5:33