stock-optionsSay you get a job offer from an established mid-size (100+ employees) bay area startup and they offer you X number of stock options. How do you find out the total number of shares outstanding? If the HR person gives you a number, can that be trusted? Without knowing the total number of outstanding shares plus your exercise price, any stock option grant is worthless.
The only way to find out definitely is to ask. Some states (like California) have filings that private companies are required to make when raising outside financing, but those can be dated and not show the whole picture.
In terms of whether or not they can be trusted, that’s a judgement call. If you feel like you can’t trust the people in the organization from the outset, then you shouldn’t take the job.
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