legal, stock-optionsI recently started a new job. The offer letter said part of the job offer was 5,000 stock options. I’ve never received any documents or contracts to sign regarding these options after working here for two months. HR tells me everything is fine, I have my options.
Shouldn’t I have to sign some document or contract about these options? How do I know the details of my options? How do I know the price of my options? What should I ask HR for, as far as information to confirm/verify my options?
There’s a deal in the works for the company to be purchased in the New Year and I need to make sure I have all my ducks in a row.
If your offer stated the stock options when you signed it, it must have also stated the vesting schedule. Typically there is cliff meaning you are not assigned any options for a period of time. In an early startup it is typical to have a 4 year vesting period with 1 year cliff, so your first stock option grant will be only after completing 1 year and there after the stock may vest monthly (or on a pre-agreed schedule). This is done to prevent someone who is has worked for less than a year to get any stock options.
Once you get your first stock option grant you may get a document which details how many options you are awarded. You can check a sample document at the following link. In terms of the actual value of those options you need to know the share price and the valuation of the deal under which your company is been acquired.
In terms of the asking someone, this information will be available with your CEO (and the board) as part of the cap table. You can ask him to share the details of the share price based on the last round of funding, this can give you some idea on how much your options are worth.
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