Whilst like many contractors I have had many offers of going permie in my contracting career, this is the first time I have been offered shares in the company I would join. Has anyone had much experience of this and did it amount to anything? They have done very nicely in the last 5 years, are cash rich and still growing. The company has (I am told) been professionally valued and my share would equate to roughly £125k based on this evaluation. Anyone experienced something like this? Their plan is to continue to grow for the next couple years and then sell. Am I likely to see a payout do you think? Would you go permie for this?
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No.
Check what class of shares you would receive.Cats are evil. -
As simple as Class A vs Class B or is there something specific I need to check?Originally posted by swamp View PostComment
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I once worked for W L Gore & Associates, they operated like this. Cash rich and had a share in the company. Turned out though that I'd have to remain there for 10+ years before I could do anything useful with it. I lasted 3.
John Lewis employees are share holders in the company aren't they? I guess it depends on the set up with each company.
Today I contract so that one day I don't have to wait until I'm 66/7? like the rest of the permies before I can retire in comfort and spend that spare time with family. Current estimates late 40's!!"Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark TwainComment
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Remember the 'shares' are worth the square root of f**k all until it floats, and a lot can happen between now and then. Also, I would assume you would have to stick around to that point, and that could be 3 years, it could be 6, it could be 10.... do you really want to stick around that long?
FWIW I wouldn't take it"Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny. "
Thomas JeffersonComment
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That's true. However I am contracting to them now in any case and I expect it could run for a few years anyway.Originally posted by Ruprect View Post
Good point. Will check for those types of restrictions. I do think they will try and sell up to a bigger player asap though.Originally posted by Ruprect View Post
It's a bit of a gamble I think but one that with a fair amount of luck could pay off nicely. Question I am weighing up I suppose is if the immediate monthly reduction of about 2-3k per month is worth risking for a potentially bigger reward at some unknown point in the future?Originally posted by Ruprect View PostComment
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Simple.
Accept the offer, sign the paperwork.
On your first day as a permie, ring up HR and say "I'd like to sell my £125K of shares please, cash will be fine, oh, and I resign".
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A mate fron uni did and accumulated more when he was working for the firm. The company wasn't a big player in their market. The company was bought over by a large company who wanted to integrate the small firm's capability into their firm. The small firm was probably the cheapest in the sector to acquire.
He received a windfall well into 7 figures sterling and was given a directorship of the acquiring firm.
Actually come to think of it I didn't like him back at Uni and liked him even less when he turned up at a uni classmate's funeral last year, seemingly to boast about his position.Comment
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Also, check if you're getting shares or if they're options. If options, check the conditions of exercising the options. Once I was given share options that could only be exercised if the company was sold, and only if I was still an employee at the time.... The owner basically had no intention of selling, but wanted to appear as if he was giving me something.Originally posted by swamp View PostComment
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