"The conventional wisdom is that you join a hot startup pre-IPO to get the low priced stock options. Techcrunch reports that some people are joining Facebook now to get in on pre-IPO shares.....The effect of the 409A requirement, and the new movement of private investors buying vested stock options from employees, is that the pre-IPO valuations, and thus the employee stock option price, are very close to the expected IPO price. So, how will there be a big bump in the stock price at IPO? My guess is there won't be a bump...and conventional wisdom will change."
Article from Don Dodge HERE
Those employees are not contended on the compensation they are receiving. That's why they are looking for something that will also increase their salary. But I think it's not fare on behalf of their company.
ReplyDeleteGreat ppost thanks
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