Job Offer! - Need help figuring out how one part of the payment works.

[Cattlegod]

In my offer there is a part that says "6% pre-tax deferred compensation component which is automatically deducted from you eligible earnings and will be redirected to your Option Account less any applicable deductions and taxes."

I have two issues:

1 - Do you know how the strike price is typically determined?
2 - This company is private, so how do options work with private companys that could have low volume?

 

[pontifex]

Scam email does not = job offer...

 

[Cattlegod]

Scam email does not = job offer...

but the guy is a prince in Nigeria

 

[JS80]

In my offer there is a part that says "6% pre-tax deferred compensation component which is automatically deducted from you eligible earnings and will be redirected to your Option Account less any applicable deductions and taxes."

I have two issues:

1 - Do you know how the strike price is typically determined?
2 - This company is private, so how do options work with private companys that could have low volume?

1) Market price at time of issue
2) Private companies usually do valuation once a year, or when they get their employee stock option packages approved by the board. Most likely it'll be valuation at the time a VC or PE last invested the monay.

 

[Cattlegod]

1) Market price at time of issue
2) Private companies usually do valuation once a year, or when they get their employee stock option packages approved by the board. Most likely it'll be valuation at the time a VC or PE last invested the monay.

Thanks! I was hoping you would chime in. They don't get any more money from PE or VCs, they are in the 10s of billions in revenue currently. I'll probably have to ask the company directly on some of the finer details.

 

[Gothgar]

but the guy is a prince in Nigeria

sounds legit

 

[JS80]

Thanks! I was hoping you would chime in. They don't get any more money from PE or VCs, they are in the 10s of billions in revenue currently. I'll probably have to ask the company directly on some of the finer details.

YW.

Wow @ bold. Only a few companies are like that. With that new info, I'd say there's someone in finance that maintains a valuation model and gets a quarterly valuation by an outside firm.

My guess out of my butt, based on info and your name, is Cargill.

 

[Cattlegod]

YW.

Wow @ bold. Only a few companies are like that. With that new info, I'd say there's someone in finance that maintains a valuation model and gets a quarterly valuation by an outside firm.

My guess out of my butt, based on info and your name, is Cargill.

Not quite that big Mars ~ 30 Billion in Rev