I just got a job offer that I intend to accept, and part of the benefits explanation says,
Pending formal approval of the [Company Name Redacted] Board of Directors’ compensation committee, your offer includes [Number Redacted] employee options. Upon Board approval, you will receive a Stock Option Agreement that will provide all of the detailed terms of your option grants.
I understand this means that nothing is guranteed, but when the Board of Directors meets I can be granted a set number of employee stock options. However, I do not understand exactly what that means. Do I have to buy the stocks outright when I start my job?
Say I have 100 options, and the current value is $10. Am I essentially "gifted" 100 shares of stock, or just given the opportunity to purchase the shares?
This is a private company, venture capitalist backed if that makes a difference.