March 19, 2021
March 19, 2021
How to figure out stock options
Lots of startups and tech companies have taken to offering their employees stock options, or ESOP (employee stock option plan), alongside their salary. It’s both a way to provide a bigger potential payday for employees, and a way to incentivize them to help the company succeed. Stock options sound exciting, but they can also be confusing. There are terms like exercise, vesting, and liquidity events, and rules around when you can do what. Let’s cut through a bit of that confusion and walk through exactly how company stock options work.Â