If you’re a startup founder or employee, you’ve probably heard the term “stock option” thrown around. But what is it? And is this really worth considering in lieu of a salary?
Stock option is a way for a company to reward its employees with shares of their company’s stock. If the value increases, the employee can then sell their stock at a profit. Depending on how successful your company becomes, this can be a very lucrative way to earn money—and it doesn’t require any work on your part!
What are the Benefits of A Stock Option
Stock option has become increasingly popular among employers because they offer several advantages over base salaries or bonuses.
- More Flexibility – A stock option allows you to earn more money and be more flexible with your time, but you won’t have to work as many hours. This is the biggest benefit of a Stock Option compared to a Salary.
- Less Stress – When you’re working for yourself and earning money based on how much work you do, there’s less stress associated with this type of salary. The only stress will come from having too much work or not enough work!
- A Better Work-Life Balance – You can get more done in less time when you don’t have to spend all day at the office or working late into the night. This means that you’ll have more time for yourself and your family!
When you’re looking to get a job, you’re probably thinking about whether or not it’s the right fit for you. But what about the money? Is it smart to take stock options instead of salary? To make a smart decision, consider the following.
- How long will it take before you see a return on your investment?
- What are the risks involved in taking stock option instead of salary?
- How likely is it that your company will survive long enough for you to see any kind of return on your investment?
- Is there anything else going on at your company that might affect their ability to pay out dividends or other financial benefits?
Taking stock options instead of salary is a great idea if you want to be able to make money from your company’s success. This could be a good option for you if you’re looking for a quick way to get rich and don’t mind taking risks.