Q. I've been working for the same company for 10 years and I have accumulated lots of company stock but I can't sell any of it until after I leave the job, which I don't plan to do anytime soon. What can I do to diversify better? Can they stop me from selling?— Too many eggs in one basketA. We’re glad to hear that you’re a saver and that you are considering the benefits of diversification. What you can do with the stock will depend on several variables.Assuming the company is privately held, your employer can restrict you from redeeming or selling your shares until you separate from service, said Ken Van Leeuwen, a certified financial planner with Van Leeuwen & Company in Princeton.He said your diversification options vary based on how you are accumulating shares.“If you are receiving shares through grants as compensation, then you lack control over accumulating additional shares and your diversification options are limited,” he said. “If you are … [Read more...] about I’ve got lots of company stock. How can I better diversify?
How company stock options work
Venture capitalist Rob Weber of Great North Labs really wants more Minnesotans to overcome their hesitancy and join promising young technology companies to get in on the stock options. He obviously thinks it’s a smart business practice for both founders and employees to share in the rewards of ownership through options, but he’s got a larger agenda here, too. Weber and his partner and brother Ryan founded a firm committed to financing growing companies in the Upper Midwest, so they want to see its whole innovation community thrive. Spreading around a little more wealth from successful businesses is one of the ways to develop a vibrant innovation cluster. Maybe employees don’t get seven- or eight-figure paydays when their employer gets acquired, allowing them to coast or become full-time investors, but a far smaller chunk of option-generated wealth is still capital. It could provide the financial breathing room as one-time employees turn into company founders and … [Read more...] about It’s smart to get in on stock options with promising startups
Nick Bastone, provided by Published 11:08 am PST, Thursday, December 20, 2018 Getty Juul will put $2 billion of its recent $12.8 billion funding round raised from the tobacco giant Altria toward employee bonuses, according to a report from CNBC. With about 1,500 employees at Juul, that means each employee on average could receive a $1.3 million bonus. Bonus amounts will depend on many factors, including how long employees have been at Juul and how many stock options they've been granted, according to the report. Altria's investment puts Juul's valuation at $38 billion. On Thursday, the Silicon Valley e-cigarette startup Juul got a whole lot richer, and, apparently, so did its employees. According to a report from CNBC, $2 billion of the $12.8 billion that Juul recently raised from tobacco giant Altria will go toward employee bonuses. With about 1,500 employees at Juul splitting the $2 billion, that means each employee on average could receive $1.3 … [Read more...] about Juul’s 1,500 employees may receive million-dollar bonuses this holiday season after the company’s recent $12.8 billion funding round (MO)
Women who work at startups earn significantly less than their male co-workers when payments in company shares are counted, according to a report released Tuesday. Startups typically offer job candidates lower salaries in exchange for stakes in the company paid out over time, typically as stock options or restricted stock units. In San Francisco and Silicon Valley, those payouts can dwarf regular paychecks, since the value of options or units grows along with the company’s worth. But new data collected by Carta, a San Francisco firm that helps companies manage stock grants to employees, suggest women employees aren’t receiving a fair share. Carta analyzed a subset of its customers, which included more than 180,000 employees at roughly 6,000 companies. Carta found that female employees receive 47 cents of stock-based pay for every dollar male employees received. That is a far wider gap than in regular pay: In 2017, women earned 82 percent of what men earned, according to a … [Read more...] about Silicon Valley underpays women in stock options, too, study says
Tesla's stock woes are continuing amid worries about the viability of CEO Elon Musk's plan to take the automaker private. Tesla stock fell $3.86, or 1.3 percent, to $301.64 in Monday trading. In a Monday research note, JPMorgan analyst Ryan Brinkman discarded any notion that Musk would take the company private at $420 a share. His analysis pegged the company's price target at $195 a share, down from his previous estimate of $308 per share. Brinkman and his colleagues now "believe that funding was not secured for a going private transaction, nor was there any formal proposal," they wrote, citing a blog post Aug. 13 in which Musk said the Saudi Public Investment Fund had requested more information about how a buyout might work. That bearish view comes after a Reuters report on Sunday that Saudi Arabia's sovereign wealth fund, a key piece of Musk's plan to take Tesla private, was mulling purchasing a billion-dollar investment in rival electric-carmaker Lucid Motors, which would give … [Read more...] about Tesla stock price slides again amid doubts over Elon Musk’s plans