I work for a start up and received (x) amount of stocks as my compensation package. We are not public yet, however I don’t fully grasp how I can exercise these stocks once they are fully vested. What are the steps when I’d sell, and how much could I potentially make here?
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More than likely, you have received an option grant as a part of your package with a vesting schedule and a strike price. So, for example, if you received 10,000 shares with a $5 strike price, a 4-year schedule, and a one-year cliff, you would be eligible to purchase 2,500 shares per year, starting on day 366 of employment for $5/share, and would be able to purchase another 2,500 shares on that anniversary for 3 more years.
You likely won’t be able to sell said shares until the company goes public or is purchased by another company.
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