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Article:

How to Evaluate an Offer

Stock Options as part of the compensation package

Some companies, both public and private, offer stock options as part of the compensation package. If you are offered stocks, find out how many shares you'll receive and when they vest. Vesting in this context is the period over which an employee has the right to realize the right to exercise options (purchase and sell shares of stock). Vesting schedules vary from company to company. Be sure to ask when the vesting period begins. You may, for example, become vested in 25 percent of your stock options after each six months of employment.

 It's also in your best interest to know your exercise price, the current price of public stock, and the number of shares outstanding to calculate the value of your options and get a better idea of your total package.

 

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