stock-options, negotiationI work for a start-up who originally agreed to give me a bonus, but has instead offered stock in a spin-off company instead. This is because they temporarily lack cash.
In principle, I’m cool with it since I like the company and have confidence in the spin-off.
As someone who is not knowledgeable on stock, what should I ask for and what can I do with it?
Any negotiating tips would be very much appreciated, thank you.
You can’t pay rent with stock options. So FWIW, and speaking for myself, I’d refuse and ask for an IOU instead.
More precisely, look into how convertible bonds work. You want an IOU. With interest. And if it’s not paid back within a certain time frame it should automatically convert to stock (not options) at a very preferential rate. That way they’ve an incentive to pay you hard cash back.
Related question of potential interest for the tax implications:
https://startups.stackexchange.com/questions/3993/equity-or-stock-option-which-is-more-common-for-early-employee/3998#3998
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