Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

It's called election 83(b). For it to work, the company grants you restricted stock instead of options. The restriction is that the company can buy back the stock on a vesting schedule, so it's effectively equivalent to stock-options. The difference is that you can buy all of them on day 1 at fair market value and pay no tax.

It's usually done for early employees who join before multiple rounds of funding occur.



Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: