Yes. Absolutely yes.
It will help not only the employee, but the startup.
What do I mean by that?
Stock options are a way to invest into a company. As soon as you purchase them, that money goes into the company, which can then be used for things like payroll, improvements, etc. More than one company I know has been saved by the right cash injection at the exactly right time, including my own former company – Evernote.
However, the penalty for exercising your options is painful. For someone in a startup, especially a serial entrepreneur who knows the reality that their options may never be worth more than the bytes they “re stored in, it simply isn “t worth taking the risk against your own livelihood (no matter how much you want to invest), because you “re penalized for that trust in your company by the US government.
A low strike price means nothing if the company valuation balloons.
Originally Posted: https://www.quora.com/Will-the-new-stock-options-bill-encourage-startups-to-give-more-employees-stock-options
Originally Posted On: 2016-09-23