Share Options for permie's

[Moscow Mule]

Misys used to (still do) a share-save scheme.

You front up so much cash a month then at the end of 3, 5 or 7 years you can buy shares at what was a discount price at the beginning of your term. Or you can have the money if the shares have tanked.

It kept a lot of people in the company through the late 90's/early 00's as they didn't want to give up there options. At the height of the tech boom, the first 7 year plan matured - quite a few folk retired off the back of it with very hefty sums of cash (20p option price, 1300p sale price)

I started too late for it to be worthwhile me holding onto my options so I left. I've since made about 10X as much as the shares would have made me...

You pays your money, and you takes your choice...

[tim123]

Misys used to (still do) a share-save scheme.

...

There's a very big difference between a share scheme in a currently listed company and one in an unlisted company. If that latter doesn't get to a listing the options are completely worthless.

tim

[TheFaQQer]

If that latter doesn't get to a listing the options are completely worthless.

Not necessarily - I wouldn't class the shares in my business as worthless, but they aren't going to be listed.

[ChimpMaster]

Handsfree - the calculation should be quite simple:

1) Work out how much the options are worth (or might be worth), realistically, at exercise time, and hence how much profit you are likely to make.

2) Work out how long contracting it would take you to save up that same amount of money.

I believe you'll find that you can earn/save a lot more by contracting, assuming you are in a marketable skillset.

[DiscoStu]

Handsfree - the calculation should be quite simple:

1) Work out how much the options are worth (or might be worth), realistically, at exercise time, and hence how much profit you are likely to make.

2) Work out how long contracting it would take you to save up that same amount of money.

I believe you'll find that you can earn/save a lot more by contracting, assuming you are in a marketable skillset.

^^^What he said

[tim123]

Not necessarily - I wouldn't class the shares in my business as worthless, but they aren't going to be listed.

shares and options are completely different things.

If a company doesn't go for a listing, options ARE completely worthless.

tim

[TheFaQQer]

shares and options are completely different things.

If a company doesn't go for a listing, options ARE completely worthless.

tim

I'll still disagree. Options in a company which then sells on to a VC can be worth quite a lot, providing you exercise them before you lose them and before the sale.