Hope this is the right place to ask, I admit not knowing much about this stuff. Am reviewing a job offer which includes stock/equity options and a cash deal. I'm trying to better understand what's on the table.
Essentially, it's base cash plus:
$80,000 payable in company shares at their fair market value (paid at the end of each month). Bonus eligibility will be up to 50% or up to a further $100,000 annually and based on performance.
Stock Options: To receive 500,000 stock options to purchase shares at $0.75 per share (current fair market value). Stock options have a term of 5 years from the date of issue, and vest as to 25% cliff vesting at the end of year 1, and the remaining 75% vesting monthly for the next 36 months.
Share Purchase: As part of your employment, we will give you the opportunity to purchase a further 250,000 shares at their current fair market value of $0.75. This gives you a combined share/option holding of 750,000 shares or approximately 7.5% of the issued and outstanding shares.
I'm not clear on how the 80k piece contributes to overall liquid every month. I'm given shares but what am I expected to do with it? And I'm given the option to re-invest and purchase additional equity?
Need a translator here, thank you.
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