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Old 05-06-2008, 08:03 PM
gekkoplus gekkoplus is offline
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Another interesting thought that came to my mind I am breathing it out here.. Let's say current stock price (and exercise price) is $500 and I get 1000 stock options. In this case every 1% increase in stock price means $5 which translates into $5000 value of options.


In another scenario, suppose current stock price (and exercise price) is $1 and I get same number of stock options. In this case every 1% increase in stock price means $0.01 increase in stock price which translates into $10 value of options.

Getting my drift here? Value of options is completely dependent on how high/low current stock price is. For a google employee, 1000 options would mean a lot compared with same number of options for a Charter Cable ($1) employee. In this case Charter Cable guy should be demanding equivalent number of options that would bring him at par with a Google employee at least at the start of the job.

So I guess I am looking for that multiplier I can use in my current case to bring my number of options at par with employees at other companies.
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