2-10 grand is way low. I’ve bought out my equity from two startups and they were both over 15k despite only vesting a small portion of the overall grant.
Yes, especially if you wait a while and get hit with the massive ISO exercise AMT tax because the fair market value is now high. I've paid well over $100k in AMT because of this.
Good data point. Yes, very few folks have it available. Especially younger folks who get talked into equity comp. Sure, you can get a loan or something. But it’s a lot to ask for most people.
Comments
2-10 grand is way low. I’ve bought out my equity from two startups and they were both over 15k despite only vesting a small portion of the overall grant.
Yes, especially if you wait a while and get hit with the massive ISO exercise AMT tax because the fair market value is now high. I've paid well over $100k in AMT because of this.
Good data point. Yes, very few folks have it available. Especially younger folks who get talked into equity comp. Sure, you can get a loan or something. But it’s a lot to ask for most people.