Mixing
Options vs Equity vs Percentage
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I received today an job offer via email for a role with a package including "Equity/options/%" as below:
I am very pleased to present the offer from company xxx!
$xxx + Super
12-month retention bonus
Equity/options/%
Xxx paid leave
I am a bit confused on what is the difference between the three, and if I understand well I need to get back to them on what I prefer so I would like to get the thing right.
job-offer australia equity
asked Aug 23 at 10:06
Yooz
1063
add a comment |Â
up vote
0
down vote
favorite
I received today an job offer via email for a role with a package including "Equity/options/%" as below:
I am very pleased to present the offer from company xxx!
$xxx + Super
12-month retention bonus
Equity/options/%
Xxx paid leave
I am a bit confused on what is the difference between the three, and if I understand well I need to get back to them on what I prefer so I would like to get the thing right.
job-offer australia equity
asked Aug 23 at 10:06
Yooz
1063
Added all message to add context. Verbatim except xxx
– Yooz
Aug 23 at 11:39
1
why not ask the company instead of us? sorry to chase you away, but it just seems silly to ask strangers for help when there is someone you can talk directly to who has the absolute answer and who is happy to tell you that answer
– bharal
Aug 23 at 12:50
You mentioned that you need to get back to them about which of the 3 choices you will take. Did they say that to you separately? That is not the first way I would have interpreted the offer letter.
– Justin
Aug 23 at 14:54
Sorry, I did not realise it was that uncommon. @Joe, Super is the retirement contribution in Australia. The all thing goes through a recruiter so that maybe where the meaning got lost. Thanks everyone for your help
– Yooz
Aug 23 at 20:32
add a comment |Â
up vote
0
down vote
favorite
up vote
0
down vote
favorite
I received today an job offer via email for a role with a package including "Equity/options/%" as below:
I am very pleased to present the offer from company xxx!
$xxx + Super
12-month retention bonus
Equity/options/%
Xxx paid leave
I am a bit confused on what is the difference between the three, and if I understand well I need to get back to them on what I prefer so I would like to get the thing right.
job-offer australia equity
asked Aug 23 at 10:06
Yooz
1063
I received today an job offer via email for a role with a package including "Equity/options/%" as below:
I am very pleased to present the offer from company xxx!
$xxx + Super
12-month retention bonus
Equity/options/%
Xxx paid leave
I am a bit confused on what is the difference between the three, and if I understand well I need to get back to them on what I prefer so I would like to get the thing right.
job-offer australia equity
asked Aug 23 at 10:06
Yooz
1063
edited Aug 23 at 11:37
asked Aug 23 at 10:06
Yooz
1063
asked Aug 23 at 10:06
Yooz
1063
asked Aug 23 at 10:06
Yooz
1063
1063
Added all message to add context. Verbatim except xxx
– Yooz
Aug 23 at 11:39
1
why not ask the company instead of us? sorry to chase you away, but it just seems silly to ask strangers for help when there is someone you can talk directly to who has the absolute answer and who is happy to tell you that answer
– bharal
Aug 23 at 12:50
You mentioned that you need to get back to them about which of the 3 choices you will take. Did they say that to you separately? That is not the first way I would have interpreted the offer letter.
– Justin
Aug 23 at 14:54
Sorry, I did not realise it was that uncommon. @Joe, Super is the retirement contribution in Australia. The all thing goes through a recruiter so that maybe where the meaning got lost. Thanks everyone for your help
– Yooz
Aug 23 at 20:32
add a comment |Â
Added all message to add context. Verbatim except xxx
– Yooz
Aug 23 at 11:39
1
why not ask the company instead of us? sorry to chase you away, but it just seems silly to ask strangers for help when there is someone you can talk directly to who has the absolute answer and who is happy to tell you that answer
– bharal
Aug 23 at 12:50
You mentioned that you need to get back to them about which of the 3 choices you will take. Did they say that to you separately? That is not the first way I would have interpreted the offer letter.
– Justin
Aug 23 at 14:54
Sorry, I did not realise it was that uncommon. @Joe, Super is the retirement contribution in Australia. The all thing goes through a recruiter so that maybe where the meaning got lost. Thanks everyone for your help
– Yooz
Aug 23 at 20:32
Added all message to add context. Verbatim except xxx
– Yooz
Aug 23 at 11:39
Added all message to add context. Verbatim except xxx
– Yooz
Aug 23 at 11:39
1
1
why not ask the company instead of us? sorry to chase you away, but it just seems silly to ask strangers for help when there is someone you can talk directly to who has the absolute answer and who is happy to tell you that answer
– bharal
Aug 23 at 12:50
why not ask the company instead of us? sorry to chase you away, but it just seems silly to ask strangers for help when there is someone you can talk directly to who has the absolute answer and who is happy to tell you that answer
– bharal
Aug 23 at 12:50
You mentioned that you need to get back to them about which of the 3 choices you will take. Did they say that to you separately? That is not the first way I would have interpreted the offer letter.
– Justin
Aug 23 at 14:54
You mentioned that you need to get back to them about which of the 3 choices you will take. Did they say that to you separately? That is not the first way I would have interpreted the offer letter.
– Justin
Aug 23 at 14:54
Sorry, I did not realise it was that uncommon. @Joe, Super is the retirement contribution in Australia. The all thing goes through a recruiter so that maybe where the meaning got lost. Thanks everyone for your help
– Yooz
Aug 23 at 20:32
Sorry, I did not realise it was that uncommon. @Joe, Super is the retirement contribution in Australia. The all thing goes through a recruiter so that maybe where the meaning got lost. Thanks everyone for your help
– Yooz
Aug 23 at 20:32
add a comment |Â
1 Answer
1
active
oldest
votes
up vote
3
down vote
accepted
The three choices they have likely offered you are:
Equity
Equity generally refers to being given shares in the company, which means you own part of the company and are eligible to vote on company matters.
This is relatively straightforward, in that you are given a "thing" (the shares) which may or may not increase in value, and that you can sell to somebody else when you want.
Options
Stock Options are a contract that specifies you can buy shares at a later date, for a pre-specified price. This means you do not have to commit to the shares immediately, and can wait to see if their price does rise (at which point, you can exercise the option to buy the shares; at a lower price than they're currently worth).
The Stock Option itself has value and depending on the contract may be tradable by itself.
Percentage
This is harder to parse, as reducing it to a single symbol doesn't convey particularly much information. However, one possible meaning is percentage profit share.
This means you receive some percentage of the company profits, in years where a profit was made, but have no controlling stake in the company.
Of course, with all of these things - the specifics will be very dependant on the specific offer they give you. I'd recommend speaking to them about this and not assuming anything. Especially given the last one "%" - which could mean any number of different agreements to different companies.
edited Aug 23 at 12:02
RJFalconer
2,1612712
answered Aug 23 at 10:18
Bilkokuya
1,0061311
add a comment |Â
1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
3
down vote
accepted
The three choices they have likely offered you are:
Equity
Equity generally refers to being given shares in the company, which means you own part of the company and are eligible to vote on company matters.
This is relatively straightforward, in that you are given a "thing" (the shares) which may or may not increase in value, and that you can sell to somebody else when you want.
Options
Stock Options are a contract that specifies you can buy shares at a later date, for a pre-specified price. This means you do not have to commit to the shares immediately, and can wait to see if their price does rise (at which point, you can exercise the option to buy the shares; at a lower price than they're currently worth).
The Stock Option itself has value and depending on the contract may be tradable by itself.
Percentage
This is harder to parse, as reducing it to a single symbol doesn't convey particularly much information. However, one possible meaning is percentage profit share.
This means you receive some percentage of the company profits, in years where a profit was made, but have no controlling stake in the company.
Of course, with all of these things - the specifics will be very dependant on the specific offer they give you. I'd recommend speaking to them about this and not assuming anything. Especially given the last one "%" - which could mean any number of different agreements to different companies.
edited Aug 23 at 12:02
RJFalconer
2,1612712
answered Aug 23 at 10:18
Bilkokuya
1,0061311
add a comment |Â
up vote
3
down vote
accepted
The three choices they have likely offered you are:
Equity
Equity generally refers to being given shares in the company, which means you own part of the company and are eligible to vote on company matters.
This is relatively straightforward, in that you are given a "thing" (the shares) which may or may not increase in value, and that you can sell to somebody else when you want.
Options
Stock Options are a contract that specifies you can buy shares at a later date, for a pre-specified price. This means you do not have to commit to the shares immediately, and can wait to see if their price does rise (at which point, you can exercise the option to buy the shares; at a lower price than they're currently worth).
The Stock Option itself has value and depending on the contract may be tradable by itself.
Percentage
This is harder to parse, as reducing it to a single symbol doesn't convey particularly much information. However, one possible meaning is percentage profit share.
This means you receive some percentage of the company profits, in years where a profit was made, but have no controlling stake in the company.
Of course, with all of these things - the specifics will be very dependant on the specific offer they give you. I'd recommend speaking to them about this and not assuming anything. Especially given the last one "%" - which could mean any number of different agreements to different companies.
edited Aug 23 at 12:02
RJFalconer
2,1612712
answered Aug 23 at 10:18
Bilkokuya
1,0061311
add a comment |Â
up vote
3
down vote
accepted
up vote
3
down vote
accepted
The three choices they have likely offered you are:
Equity
Equity generally refers to being given shares in the company, which means you own part of the company and are eligible to vote on company matters.
This is relatively straightforward, in that you are given a "thing" (the shares) which may or may not increase in value, and that you can sell to somebody else when you want.
Options
Stock Options are a contract that specifies you can buy shares at a later date, for a pre-specified price. This means you do not have to commit to the shares immediately, and can wait to see if their price does rise (at which point, you can exercise the option to buy the shares; at a lower price than they're currently worth).
The Stock Option itself has value and depending on the contract may be tradable by itself.
Percentage
This is harder to parse, as reducing it to a single symbol doesn't convey particularly much information. However, one possible meaning is percentage profit share.
This means you receive some percentage of the company profits, in years where a profit was made, but have no controlling stake in the company.
Of course, with all of these things - the specifics will be very dependant on the specific offer they give you. I'd recommend speaking to them about this and not assuming anything. Especially given the last one "%" - which could mean any number of different agreements to different companies.
edited Aug 23 at 12:02
RJFalconer
2,1612712
answered Aug 23 at 10:18
Bilkokuya
1,0061311
The three choices they have likely offered you are:
Equity
Equity generally refers to being given shares in the company, which means you own part of the company and are eligible to vote on company matters.
This is relatively straightforward, in that you are given a "thing" (the shares) which may or may not increase in value, and that you can sell to somebody else when you want.
Options
Stock Options are a contract that specifies you can buy shares at a later date, for a pre-specified price. This means you do not have to commit to the shares immediately, and can wait to see if their price does rise (at which point, you can exercise the option to buy the shares; at a lower price than they're currently worth).
The Stock Option itself has value and depending on the contract may be tradable by itself.
Percentage
This is harder to parse, as reducing it to a single symbol doesn't convey particularly much information. However, one possible meaning is percentage profit share.
This means you receive some percentage of the company profits, in years where a profit was made, but have no controlling stake in the company.
Of course, with all of these things - the specifics will be very dependant on the specific offer they give you. I'd recommend speaking to them about this and not assuming anything. Especially given the last one "%" - which could mean any number of different agreements to different companies.
edited Aug 23 at 12:02
RJFalconer
2,1612712
answered Aug 23 at 10:18
Bilkokuya
1,0061311
edited Aug 23 at 12:02
RJFalconer
2,1612712
edited Aug 23 at 12:02
RJFalconer
2,1612712
edited Aug 23 at 12:02
RJFalconer
2,1612712
2,1612712
answered Aug 23 at 10:18
Bilkokuya
1,0061311
answered Aug 23 at 10:18
Bilkokuya
1,0061311
answered Aug 23 at 10:18
Bilkokuya
1,0061311
1,0061311
add a comment |Â
add a comment |Â
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Added all message to add context. Verbatim except xxx
– Yooz
Aug 23 at 11:39
1
why not ask the company instead of us? sorry to chase you away, but it just seems silly to ask strangers for help when there is someone you can talk directly to who has the absolute answer and who is happy to tell you that answer
– bharal
Aug 23 at 12:50
You mentioned that you need to get back to them about which of the 3 choices you will take. Did they say that to you separately? That is not the first way I would have interpreted the offer letter.
– Justin
Aug 23 at 14:54
Sorry, I did not realise it was that uncommon. @Joe, Super is the retirement contribution in Australia. The all thing goes through a recruiter so that maybe where the meaning got lost. Thanks everyone for your help
– Yooz
Aug 23 at 20:32