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Lower salary w/stock options versus higher salary no stock options
Posted on 2/19/14 at 9:13 pm
Posted on 2/19/14 at 9:13 pm
Difference in salaries w/wo stock is 5 k.
I know very little about stocks. Which would you say is a better deal?
I know very little about stocks. Which would you say is a better deal?
6
Posted on 2/19/14 at 9:19 pm to Evolve
If it's more than 10% take the stock. Otherwise cash is king to me.
Eta: I'm assuming a multiyear stock option
Eta: I'm assuming a multiyear stock option
This post was edited on 2/19/14 at 9:21 pm
Posted on 2/19/14 at 9:32 pm to Evolve
It should be easy to evaluate the value of the stock options. Agree with C, if roughly the same value then go with cash. I would guess the stock option is worth more if you are willing to accept the terms of when you can sale them. I guess a big question is how do you feel about the future of the company. What will the stock value do during the time you can't sell?
Posted on 2/19/14 at 10:01 pm to Evolve
Without knowing the specifics, I'd take the cash.
1. The extra pay gives you an essentially permanent boost up. If you're good but times are bad your pay will not be cut, in fact if you're good enough you can demand a raise. This is at least something within your control.
2. Options are a play on how well other people do their jobs. Are you in a position where you can accurately judge this? If so, you probably wouldn't post this question here.
3. These days employee options are somewhat oversold. People got rich off them in certain unusual situations when times were good in the 90's but that was then and this is now.
This doesn't mean options are worthless or that it will never work out. I'm just saying you need to know quite a bit more before you pass up a $5K pay raise.
1. The extra pay gives you an essentially permanent boost up. If you're good but times are bad your pay will not be cut, in fact if you're good enough you can demand a raise. This is at least something within your control.
2. Options are a play on how well other people do their jobs. Are you in a position where you can accurately judge this? If so, you probably wouldn't post this question here.
3. These days employee options are somewhat oversold. People got rich off them in certain unusual situations when times were good in the 90's but that was then and this is now.
This doesn't mean options are worthless or that it will never work out. I'm just saying you need to know quite a bit more before you pass up a $5K pay raise.
Posted on 2/19/14 at 10:10 pm to eelsuee
Its a strong growing company. Stock futures look good.
What do you mean by 10%? Are you talking about vesting?
What do you mean by 10%? Are you talking about vesting?
Posted on 2/19/14 at 10:17 pm to Evolve
If your salary pay is less than 10% lower than the stock option value, I'd take the cash. How long until you are able to sell the stock?
Posted on 2/19/14 at 10:30 pm to Evolve
What kind of company? Is it a build to flip?
Posted on 2/19/14 at 11:47 pm to Evolve
Take your cash
Posted on 2/20/14 at 8:13 am to cwill
Its oil and gas major.
Posted on 2/20/14 at 8:25 am to C
Its 100 SARs. That vest 25% per year. Also 50 restricted shares that don't vest until 5 years. Then there is also the espp voluntary stock with a max 10k contribution. This happens twice a year with a 15%discount. Once espp is bought and awarded to employee you can sell it that day for profit or hold on to it.
Thats basically whats being offered stock wise. Also a signing bonus which is nice.
Current company has slightly better benefits but its nit picky. Has a higher match on retirement 9% vrs 6%. But has no stock options. Basically its take a 400 a month pay cut for the stock options above. Just confused on if this would basically balance itself out i.e. making up that 5 k in stocks every year.
Thats basically whats being offered stock wise. Also a signing bonus which is nice.
Current company has slightly better benefits but its nit picky. Has a higher match on retirement 9% vrs 6%. But has no stock options. Basically its take a 400 a month pay cut for the stock options above. Just confused on if this would basically balance itself out i.e. making up that 5 k in stocks every year.
Posted on 2/20/14 at 9:18 am to Evolve
Think of it this way. If someone walked off the street and handed you $5,000 free and clear, would you immediately plow it all into company stock?
ETA: the 3% difference in retirement match means that the difference in salary isn't really $5K.
ETA: the 3% difference in retirement match means that the difference in salary isn't really $5K.
This post was edited on 2/20/14 at 9:20 am
Posted on 2/20/14 at 9:50 am to Cold Cous Cous
I'd take the options. That 5k is only $208/check before taxes. After taxes, 401k etc etc etc it's going to be eaten up.
The options are a play on the company and it's ability to sell down the road. If you think that is a definite option you'll be sitting in the catbird's seat with those as the options should become fully vested to you upon a sale.
The options are a play on the company and it's ability to sell down the road. If you think that is a definite option you'll be sitting in the catbird's seat with those as the options should become fully vested to you upon a sale.
Posted on 2/20/14 at 10:34 am to Evolve
I'd take the cash. You'd have to stay with the company for 4 years to get all of those 100 SAR's, and 5 years to get the other 50. It's great to think you will be with the company for that long, but in this day and age, I don't think it's realistic.
Plus, you could use the additional salary to buy more in the ESPP.
And as everyone mentioned, stocks are hinged on the entire company's performance, not your personal performance, so there is much more risk involved here.
Plus, you could use the additional salary to buy more in the ESPP.
And as everyone mentioned, stocks are hinged on the entire company's performance, not your personal performance, so there is much more risk involved here.
Posted on 2/20/14 at 1:24 pm to Shenanigans
Thanks for the input guys. I think Im going to stay put. I just got a raise so its actually more like a 10k difference now.
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