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Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

For most startup employee’s startup stock options are now a bad deal. Why Startups Offer Stock Options. In tech startups stock options were here almost from the beginning, first offered to the founders in 1957 at Fairchild Semiconductor , the first chip startup in Silicon Valley. Here’s why.

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Stock options or more cash?

Berkonomics

and stock options as a perk? Email readers, continue here…] One of the items on Cohen’s list of twenty-five was stock options. Many skilled, experienced executives have jumped from mature companies to more risky positions in smaller, fast-growing enterprises primarily for the options.

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Understanding Stock Options

YoungUpstarts

While most folks know the basic benefits of receiving stock, many employees are taken off guard by the tax implications that follow. There are two types of stock options, Incentive Stock Options (ISO) and Non-Qualified Stock Options (NQSO). Incentive Stock Option (ISO).

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Startup Stock Options Are Not Reliable Compensation

Startup Professionals Musings

Thus, stock doesn’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “potential bonus,” rather than a key part of your compensation for joining a startup. 7% Product Manager,2 -.3%

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How Many Startup Stock Options are Enough?

Startup Professionals Musings

Thus, stock doesn’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “bonus,” rather than a key part of your compensation for joining a startup. Advisory Board Member, 1% Senior Engineer,3 -.7%

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How to Discuss Stock Options with Your Team

Both Sides of the Table

Options are gravy - I lived through the first dot com era where we used stock options as a recruiting tool. We give out stock options. Do the harder work and convince them to join anyways – without the stock option bravado. ** Unless you really are Mark Pincus, Mark Zuckerberg, Ev Williams or similar.

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How Valuable Are Stock Options Offered By A Startup?

Startup Professionals Musings

Thus, options don’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “potential bonus,” rather than a key part of your compensation for joining a startup. 7% Product Manager,2 -.3%