Good Financial Reads: Equity Compensation Edition
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Stock Options vs RSUs: What’s the Difference?
by Alvin Carlos, District Capital Management
RSUs and stock options are both forms of employee equity compensation offered to an employee by a company. When you are considering your compensation, you should look beyond your paycheck to see if you are offered RSUs or stock options. Some companies offer the choice of selecting between stock options or RSUs or a 50/50 mixture of both. Understanding the differences between stock options vs RSUs will help you make an informed decision about which equity compensation is best for you and adjust your financial plans accordingly.
What to Do With Stock Options at Termination
by Rebecca Conner, SeedSafe Financial
Stock options (ISOs or NQSOs) generally expire 10 years from the date of grant. This makes sense most of the time as the majority of startups aim to go public or exit within that time frame. What we don’t think about is what happens to stock options at termination.
This isn’t the only time you may be wondering what to do. Stock options add to the fun at:
To Sell, or Not to Sell, That Is The Question
by AnnaMarie Mock, Highland Financial Advisors
There has been no shortage of volatility with global equity markets on a rollercoaster ride this year. A steep drop in prices scares investors and heightens our senses to pay attention to avoid making mistakes. However, this fear can lead to indecision or taking no action. No one can predict how stock prices will move or how long it will take to recover from a market drawdown, so a long-term strategy is critical.
Tender Offer Basics
by Rebecca Conner, SeedSafe Financial
During a ‘down time’ in the economy, many companies may turn to tender offers to satisfy grumbling employees who expected an IPO. Other private companies may provide tender offers as the company becomes more mature and stable. This is generally in the later stage of the tech life cycle.
Following along with the blogs of financial advisors is a great way to access valuable, educational information about finance — and it doesn’t cost you a thing! Our financial planners love to share their knowledge and help everyone regardless of age or assets.
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