2

Here is how it went down and what they're offering me. What should I make of it/ask them about?

1) They are changing the bonus structure to allow me to get the payout IF we make a certain revenue number (stretched but attainable).

2) They are also offering options for the first time which are given under the same revenue restriction.

Boss says that the investors will sell their shares within the next 6-8 months to a financial institution. I am assuming that they would buy my ownership as well. My hunch is that the company burned most of their cash and are looking for an exit quickly and that this is our last investment round.

I just need help to make sure that I am thinking about this correctly.

  • Do you already own shares in your employer? – Chris W. Rea Aug 30 '13 at 14:33
  • No, this is a first for me here. – Alex Aug 30 '13 at 14:46
3

Usually options vest over a few years so if there was a liquidation event in six to eight months , its likely none of your options would be vested. To completely understand your option package you need to know the strike price (the price you have to pay for the options), the vesting schedule, and the total number of shares outstanding. With that info you can calculate if the options have the potential to be worth anything significant.

Sometimes during liquidity events your vesting schedule can be accelerated, but this is usually not guaranteed.

If your base is a significant portion of your salary then sticking it out for 6-8 months to see what happens doesn't seem like a bad idea. OTOH if it isn't and your bonus is most of your comp, you might want to reevaluate.

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