Is it useful for the company to give options?
Company options are actually the same as options in the market, which give you the right to trade a certain number of stocks under certain conditions. However, the purpose of company options is to bind the interests of employees and the company together. After meeting the agreed conditions, employees holding options can purchase the expected rights of the company's equity at a specific price (often much lower than the price that other investors buy the company's equity), which is a talent incentive method adopted by many startups and even listed companies.
Company options reflect the rewards and concessions provided by the company to employees. Whether to exercise the options in hand is the right of employees, not the obligation. Employees exercise their rights, pay the exercise price according to the option conditions, acquire the company's equity and become shareholders of the company; If the employee waives or does not exercise the option, the option will be invalid.
Many startups have borrowed this approach. Most companies have insufficient strength and cash flow in the initial stage of their business, so most start-up companies will set aside a part of their shares to let employees buy shares at extremely low prices, become shareholders of the company, and attract and retain outstanding talents. In many cases, this price is very low. If the enterprise is well managed, listed or sold, this part of the equity will become very valuable.
The company gives options. Do you want to buy it? First, from two perspectives, first from the perspective of employees, and then from the perspective of the boss.
If you are an employee:
Regarding options, the method of judging whether to buy or not is actually very simple. If you are entangled and hesitant, don't buy it.
The boss buys you options and stocks, thinking that they are gifts from the company, but you have to pretend to be grateful and fight for them. This is basically nonsense, disgusting, ignore him.
If you want to stay in the company for a while, do some superficial work.
Resolutely do not buy. If you buy it, change the deposit and tie yourself up.
If you are in a big company such as Huawei and Ali, and the company wants to sell you options and stocks, you will not hesitate. Compare it and you'll know what's going on
If the company doesn't make money, or you don't know whether to make money, letting you buy stocks and options is basically a means of deceiving employees, or bundling. What the boss wants is not to motivate employees, but how to bind some employees and improve his turnover costs.
Buying options is actually more cheating than buying stocks in the stock market. The boss just wants to control his employees better by this means. Relax.
The company makes money and has a clear exit mechanism. And it's best to send you some first, so that you can taste the sweetness, and then buy it at a preferential price later. This is reliable! From the beginning, I asked you to give money, how to share dividends and how to quit. Don't you dare to buy it without making it clear.
Although my previous company didn't make much money, my boss gave some first, then bought one, and then gave one away for free. And only a few employees have this opportunity, not for everyone to fight for it. The boss knows which employees are important to him, and he will try to motivate them instead of letting you fight for them. The boss knows which employees are important to him, and the company can just catch these employees, so others can naturally move.
If the company engages in option purchase, it may be that the company loses money and wants to circle the employees' money, which is sad.
The above are my "quotations" in the group, and the content may be a bit messy and scattered. Let me sum up:
1) If you hesitate to buy an option, it means it is not worth buying. You need to be soft-spoken, soft-spoken, and never buy anything in action!
2) The company continues to make profits and has a clear dividend, reward and withdrawal mechanism. If you plan to develop in the company for a long time, you can consider buying it.
If you are the boss:
The company can't continue to make money or even lose money. You're worried that key employees will leave. You must never participate in options. If you insist, the consequences will be like this:
1) Most core employees will not buy, or will only buy in small quantities. Whether you buy it or not, you will leave your job one after another, and some will even leave immediately.
2) Employees who are willing to buy are basically employees who can't run away, and it is difficult for them to find more suitable jobs or employees who are not motivated. As a boss, do you want to use such employees?
However, the company's operating conditions are really unsatisfactory, and core employees may leave. What should we do?
1) The improvement of business conditions mainly depends on the boss himself. Don't spend energy and time "squeezing" internal employees. You should explore more markets, personally and fully overcome the obstacles in the market, manage more customers, and find ways to open the market.
2) Being kind to employees is the most fundamental way to retain employees. Most IT people are very kind. You should honestly explain the current situation and difficulties of the company to employees, so that everyone can understand and find a way together. You have to set an example first, so employees will see your efforts. This will keep the employee for a while, but if the company's situation does not improve for more than half a year, the employee will still leave, so you should send him away and wish him a bright future.
If the company can continue to make money and is on the rise, options and stocks can do this:
1) Choose the employees you think are the most important to the company and consider giving them options or stocks. Other ordinary employees can be ignored for the time being.
2) Give a small amount of options or stocks first, so that employees can get benefits first, such as paying dividends according to the company's profits every six months.
3) Give employees preferential policies and buy more options or stocks.
4) Clear the withdrawal mechanism, such as the original amount can be refunded if you resign.
In fact, from the company's point of view, the real core employees will not exceed 20% (the 28 th rule), and the boss naturally knows which employees are important to you. The most important way to keep employees around you is to gradually turn this employee into a boss and your partner.
In fact, every employee will have his own ideas and development routes, so don't be too demanding to agree with you. A capable person has strong independent thinking ability. The boss is open-minded, but the effect is better. If the employee you admire really wants to develop in a different way, encourage him and support him, he will have the opportunity to become your business partner or bring you business opportunities in the future.