# Valuing a company's stock award

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?

• Is the stock publicly traded? I assume so, as you are mentioning the closing stock price. Commented Sep 30, 2016 at 14:23
• Yes, the stock is publicly traded Commented Sep 30, 2016 at 14:26
• How about consider that you could choose to immediately sell the shares when you get them, so just value this as 4 \$25k payments, one each year. Commented Oct 30, 2016 at 21:40