As part of an offer I received, the company gives me a stock award in the following manner. The number of shares received is equal to some number $XXX (specified in my offer letter) divided by the closing stock price on a future date. This stock award vests over a period of N years. I'm trying to determine how much I should value this, and have a few questions below:
- Is a "stock award" essentially the same as a "stock grant"?
- I'm not sure how taxes play into this award, what should I be cognizant of/what should I ask my recruiter?
- Suppose the award vests evenly over 4 years, with 1 year cliffs, and suppose the value of the award if $100K. Would the following calculation be correct? The total number of shares received at the Y1 cliff is equal to: $25K / [stock price at Y1]. At Y2, I would receive an additional $25K / [stock price at Y2] shares. Note, I am ignoring taxes for the moment, as well as any discount I receive when purchasing company stock.
- In a negotiation with another company, can I count the entire $XXX stock award towards my "year one compensation", or would it be more accurate to only count $XXX/[vesting period] towards my year one comp?
Thanks for your help.