Equity · Stock Options

Equity as stock options vs granted restricted stock at Series A vs granted at seed?


July 26th, 2015

Implications of stock options vs granted restricted stock @ Series A, & or granted @ seed?

I'm trying to wrap my head around the implications of being offered stock options at Series A, vs getting them granted (company pays) as restricted stock, vs getting that same granted restricted stock now @ seed?

How do tax implications differ, cost if company doesn't pay for them, and or what friction exists with one or the other at time of sale?

I get the whole vesting schedule implications, so I'm mainly asking this question based on advantages vs disadvantages for negotiation purposes.

Thanks in advance for sharing your knowledge / experience.

Eleanor Carman Incoming BLP Sales Associate at LinkedIn

July 27th, 2015

I saw an article about this and wondered the same thing. The person that posted had negotiated for restricted stock and wanted to know if she had negotiated successfully. But everyone in the comments below said they also couldn't decide if she was successful or not - super interesting question.