5 Things Employees Need to Know About Their Stock Options!
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5Things Employees Need to Know re ESOs.pdf
Although some companies have stopped granting stock options, employees with outstanding ESO grants still need to make timely and informed decisions. This document illustrates concepts that facilitate prudent decisions and maximize motivation and retention.
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Bill I am now able to view your 5 Things and here are some comments.
Part 1. I am not able to determine the current stock market price and I think you should also indicate the taxes that become payable upon termination.
Part2.I think the totals should be in the form of BSTV rather than Intrinsic values
Part 4. Does the 60% equal the BSTV or the Intrinsic value?
Part 5. What is the probability of a reasonably volatile stock having a 2.26% or 7.78% insight ratio after 3 or 4 years from the grant. Would you say 1 in 6 or 1 in 30 or 1 in 200.
Regards
John Olagues
Hi John, thanks for your feedback regarding the "5 Things Employees Need to Know About Their ESOs".
This document is purely for illustrative purpoese and leaves out many of the assumptions (e.g. Market Price, Volatility, etc.) used in the example.
Without getting into the weeds, the 5 concepts recipients need to understand to make informed decisions are: Forfeit Value, Leverage, Goal Attainment, Concentration %, and Insight Ratios.
More information about these concepts can be found in the "Demo" at www.stockopter.com.