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2

They are not arguing that stock options are better than cash. "The reason that they give is that, in the future, your compensation will have much more equity and early in your career stock options are limited compared to the future." I see nothing in that statement that claims stock options are a good thing relative to cash. It is a statement of ...


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Employee stock options give workers an opportunity to own a slice of the company. They allow them to purchase stock at a set price within a specified time frame, typically for less than the current market price. If a company goes public, the benefit can be life changing for early-stage employees and executives.


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Firstly, you need to distinguish between stock and stock options. Just giving out stock has no special benefits. But stock options have big benefits for the company: "buy now pay later": they cost almost nothing until the options vest, which is usually some years after they are delivered to the employee. incentive payment: you generally lose ...


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If you are compensated with stock, then dividends are often taxed at a lower rate than salary income, but otherwise you are hoping that the value of the stock will increase over time. And if you are compensated with options, you are not entitled to dividends as you don't own the stock itself, but again you would be hoping that when the options vest you could ...


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Based on my limited knowledge about stock options (an non-existent knowledge of any associated accounting norms), here's how I would do it. The short answer is probably yes, it is all this moot and you should only count the number of shares and do accounting when you exercise and sell (see §1 and §2 below in case you are not sure how that would work). If you ...


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