J just got 500 options of his company's stock as a bonus! So yaaaaay for that :) Good job dear! And now to the real stuff. How on earth are companies getting away with this bs exactly??? They know giving hard cash as a bonus means a real trade -- they give and we get. This options crap is all nonsense. You have an option to buy the stock if you wish! Yeah! Like I'd want to say "Oh! Thank you but I don't want the bonus money. You seem to be more in need of it than me!" No seriously Blog! What does it mean that I have an option of buying it later? What the hell are you giving me?
And oh! did I mention they're not "vested" for another three years? Oh we love the work you've done and the effort you put in this year and so we want to thank you for that 3 years later! WTF is that? 3 years! Yeah sure he'll stick around that long! In all honesty Blog, I think that is what these companies are counting on.
a) The recipient would not be around to actually exercise his options
b) The stock price won't really be that much higher than the strike price and so the recipient can't justify spending that crazy cash to buy a falling stock!
c) Revisit the offer 2 months before 100% vesting and if both the conditions above fail, then announce a downsizing and let go of the recipient.
I want my bonus dammit! And I want it right now! When it comes to busting my chops, I don't give you "options" to exercise it later. Do I? So now, be good and fair!
P.S.: If you haven't figured it out already my dear Blog, I have a fair deal of options myself!