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What Employees Need to Know About Stock Options

Employee options are a popular reward method. For employees, receiving options enables significant reward and a source of profit if the company is successful and ultimately sold. From the company’s point of view, providing options is a tool to incentivize employees. It can also help reduce the gap between the interests of managers and those of employees. However, since the world of options is complex, it is important to examine what you really know about option allocation, how to evaluate the worth of the options, what the risks are in holding options, and when they can be executed.

 

 

In this short video, Adv. Yuval Lazi explains the guiding principles in granting options, how you can estimate how much the options are worth, and what is important for an employee to know when he receives options.

 

Source: barlaw.co.il

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