cover of episode Don't Get Screwed By Your Company's Stock Options: What To Ask Your Employer About Your Equity

Don't Get Screwed By Your Company's Stock Options: What To Ask Your Employer About Your Equity

2024/9/20
logo of podcast Money Rehab with Nicole Lapin

Money Rehab with Nicole Lapin

Chapters

Startup equity offers can be exciting, but it's essential to understand what they truly mean. Stock options give you the right to buy company stock at a specific price, but they're not a guarantee of riches. Many factors can influence their eventual value, so it's crucial to ask the right questions before accepting an offer.
  • Stock options represent the right to buy company shares, not actual ownership.
  • The value of stock options depends on the company's growth and a successful exit event.
  • It's important to understand how stock options work to avoid potential financial disappointments.

Shownotes Transcript

When Facebook went public, 88 employees saw the value of their equity exceed $30 million. That’s the dream right? But not only is this dream rare, it can actually turn into a nightmare if you don’t ask your company the right questions about your stock options. Today Nicole talks about how to protect yourself from this nightmare scenario with Tracy DiNunzio, a brilliant entrepreneur who built and sold the luxury resale company Tradesy. Nicole and Tracy explain what you should ask your employer about your equity, and if you get a job offer with a large equity component, how to evaluate if the opportunity is a good one.