Hi all,<p>I'm starting a new job and this new position has stock options. I've never had stock options before, so I'm looking for some quick advice.<p>The logistics of the stock options are fairly standard. 1 year vest @ 25% then ~2% each month after the first year.<p>Here's where it gets tricky. I'm planning to move away in 6 months - nothing I can control. However, I'm not 100% certain I can keep the job when I move, though I think it's not out of the question (as is why I took the position).<p>So, the question is... should I even consider stock? If I leave within the 1st year, I lose everything. But if I buy stock and then get to keep my job after moving, it'd probably be worth it. This company is also a private company with a possible IPO this year.<p>Thanks for any advice in advance!
Get some basic understand about how stock options work (grant, vesting, exercise) as well as how tax on options and shares works in your country. You could start here: <a href="http://blog.alexmaccaw.com/an-engineers-guide-to-stock-options" rel="nofollow">http://blog.alexmaccaw.com/an-engineers-guide-to-stock-optio...</a><p>If you can estimate the value of the company today (e.g. if they had a recent round of fundraising, and you know the terms) then, providing you have access to the cap table (shares and options outstanding) and info on any different classes of shares, you can work out what the shares you would get are worth. Combined with the info on how the stock options work (strike price etc.) you can work out how much they are worth.<p>This isn't trivial, but it's just math. The first step is working out what you think the company is worth (given fundamental value, and when/how they might exit/IPO). If this yields a zero or low number, then you don't need to do any calculations.
I don't understand some details of the redaction. Are you going to pay money from your pocket to buy the options or you are going to have a discount of your salary in Exchange of the options?
[IANAL]<p>Read the stockholder agreement, the articles of incorporation, and your employment contract. Consider consulting an attorney to review these documents.<p>Consider acting with inscrutable ethics.