5 money-making questions you should ask about employee stock options
Jun 6, 2017, 17:05 IST
The Employee Stock Option (ESO) is becoming popular among companies who offer equity compensation to their employees and executives.
Through the ESO options, companies give employees the right to purchase the company stock at a specified price, generally lower than the price offered to investors, for a limited time period.
It has now become important to understand and know everything about the ESOs as companies are encouraging stock options over higher salaries to employees.
As per a Glassdoor post, it is not advisable to take a pay cut in favour of stock options and they should be taken as the icing on the cake to the base salary that you negotiated.
While we all hope our company succeeds, stock options may eventually become worthless if the company flounders. If the stock options you’re being offered are not stand-ins for more valuable benefits (and this depends on your own personal value scheme for what the hierarchy of valuable benefits is), then go for it.
If still you don’t know how to talk about it to the HR, here are 5 important questions that you must ask about the ESO
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Through the ESO options, companies give employees the right to purchase the company stock at a specified price, generally lower than the price offered to investors, for a limited time period.
It has now become important to understand and know everything about the ESOs as companies are encouraging stock options over higher salaries to employees.
As per a Glassdoor post, it is not advisable to take a pay cut in favour of stock options and they should be taken as the icing on the cake to the base salary that you negotiated.
While we all hope our company succeeds, stock options may eventually become worthless if the company flounders. If the stock options you’re being offered are not stand-ins for more valuable benefits (and this depends on your own personal value scheme for what the hierarchy of valuable benefits is), then go for it.
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