When is exercising the WRONG decision?
(Let me direct first: I am NOT advocating for a lack of physical exercise or mental exercise. It is an essential tool in the belt for everyone. I am not talking about ditching your Peloton Bike...I consider myself a rower but goodness gracious those beasts are expensive)
See what I did there?…No?…I’ll continue with my weak attempt at pre- Dad humor with a matter of fact statement
“Being an early stage employee is really, really difficult..especially now”
But why? Let’s face it, startups face the daunting challenge of surviving 2020/2021 while trying NOT to dilute any future earning potential for their employees and investors.
That is threading the needle with zero guarantee for tomorrow
And with many people needing cash soon, startup employees will face a decision of
‘letting it ride’, cashing earned options/stock or expending their hard earned cash…what.to.do?
I wish I had the answer to every specific question but in this instance, SecFi has done an amazing job of building this easy to digest guide for startups to learn how equity is priced, carved, accrued and you got it, #exercised.
Since the name of the game shifts to retention, it is never been a harder time to make a decision as a startup employee with options…to exercise or to not, tis the question?