• @[email protected]
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    -210 months ago

    It’s in the form of stock options, which won’t be worth any particularly noteworthy amount unless the IPO goes really well.

    • @SpaceNoodle
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      710 months ago

      If it has a dollar valuation, if it’s taxable, it can be liquidated.

      • @[email protected]
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        -210 months ago

        Are you talking about writing them off?

        Options come with the obligation to pay for the underlying asset, so unless they are valued above the strike price, they are effectively worse than worthless.

        • @SpaceNoodle
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          10 months ago

          No, I’m talking about real compensation.

          Is it just options specifically, or grants, or …?

          Would the reported compensation be at the strike price, or the current valuation, or the difference?

          • @WildPalmTree
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            110 months ago

            Not American, but I would assume the Black-Scholes model will be used for valuation.

          • @[email protected]
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            -210 months ago

            Face value is unlikely to be the amount reported - I doubt the options are granted below the last reported market rate. Hence it’s probably relative to the amount of underlying stock the options represent.

            You’d have to check the SEC-filings for more accuracy than that.

        • @WildPalmTree
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          210 months ago

          Options can come with or without the obligation to buy the underlying asset. I’d assume they will never be worth less than worthless.

          • @[email protected]
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            110 months ago

            Less than worthless would be when exercised, not exercising would be worth 0 - unless you paid for the option contract, in which case not exercising would represent a loss.