I currently have an unpaid offer from a tech company, however, they have mentioned the following in the offer letter. Since, I am not aware of stock terminology, if someone can explain to me what this really means, that would be great:
Your initial compensation for the above mentioned work is in the form of a Non-qualified stock option grant, equaling 75,000 options, which vests straight-line and quarterly over a four-year period, as long as you are in our employ. As of the date of this letter, there are 3.02M issued stock plan shares.
Please explain to me what the above paragraph means in simple language, and since it's unpaid, will I have to pay taxes on the stocks next year?
I am currently located in California, United States.