Navigating Startup Stock Options

This chapter explores the intricacies of stock options for startup employees, focusing on strike prices, tax implications, and the challenges of exercising options during fluctuating market conditions. It highlights the dilemma employees face when needing to pay taxes on appreciated shares ahead of a potential public offering, posing financial risks. Additionally, strategies for managing underwater options and the importance of personal contributions to the company are discussed, providing insight for employees navigating their equity compensation.