Would you take stock options instead of money? Thread poster: Veronica Durbaca
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I was offered payment in stock options by an American private company. I'm thinking about accepting the job, because it's not a big translation and their business looks promising. What would you do?
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Personally I would not accept it, but it depends on your needs and your "business vision".
This is not a very useful answer, I know, but it is my humble opinion
Good luck!
ALE
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Ralf Lemster 
Germany
Local time: 17:42
English to German
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| Can you assess the worth of these options? | Sep 19, 2003 |
Hi Veronica,
I find your posting interesting because we were discussing this job (and in particular the embedded proposition for payment) among moderators. We decided to vet it because the proposal was stated very clearly.
To answer your question, however, is more complex. To compare the value of these options (particularly as an alternative to cash), you would need to assess a multitude of factors, including (but not limited to):
- the company's current and futur... See more Hi Veronica,
I find your posting interesting because we were discussing this job (and in particular the embedded proposition for payment) among moderators. We decided to vet it because the proposal was stated very clearly.
To answer your question, however, is more complex. To compare the value of these options (particularly as an alternative to cash), you would need to assess a multitude of factors, including (but not limited to):
- the company's current and future financial situation;
- their projected business development;
- risk factors which might result in a deterioration of business, and even in bankruptcy;
- the expected share price development, based on these forecasts, over the period of time for which you envisage holding the options;
- the conditions set out for the option right (exercise period, exercise price, any restrictions to exercise); and
- the transferability of the option right as well as of the shares resulting from exercise (assuming that at some point you would want to sell either of them).
Option-based payment is more attractive if the theoretical value of the options is higher than the cash alternative. If it isn't (or if you're unable to calculate that theoretical value), you're taking a gamble on the company. That's fine, but you should separate that decision from the translation job involved.
Note that I'm not saying that you should or should not do it - what I'm trying to get across is that the question itself is a complex one.
Hope that helps a bit - best regards, Ralf
[Edited at 2003-09-19 16:02] ▲ Collapse
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| Thank you, María and Ralph | Sep 19, 2003 |
The reason I didn't separate this quasi-payment from the job involved was that I wouldn't take up a big or extremely difficult translation job if the payment were uncertain. In this case, it is supposed to be a 3 or 4 days job, which I can afford to waste, in the event of my "stock sense" failure...
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| One stock equals a high risk | Sep 19, 2003 |
When trading with stocks, one rule is to spread the risk. One thing is normally certain: Most likely you will loose money buying stocks only from one company.
And buy the way: If the company is promising I am sure they have enough money to pay a translator for a couple of days worth...?
I would have said no.
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Paul VALET (X)
France
Local time: 17:42
| Beware of the costs on the stock market | Sep 23, 2003 |
Don't forget that you would have to pay a price to sell your stocks or exercize your rights on the options.
For a small amount of money, that price could be relatively high.
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SCosta
Local time: 17:42
Spanish to Portuguese
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| You don't know what you get... | Sep 26, 2003 |
I wouldn´t accept such payment for one reason: I am not a stock broker. I don't have information about the company and/or the stock market.
Such market is quite complex, the "outsiders" usually loose money.
Without information and knowledge such payment is a bet. You might not loose, you might not earn...
Such proposal is like make you betting on your payment. You render a service and you don't know the exact price for it because it depends on external factors.
and why ... See more I wouldn´t accept such payment for one reason: I am not a stock broker. I don't have information about the company and/or the stock market.
Such market is quite complex, the "outsiders" usually loose money.
Without information and knowledge such payment is a bet. You might not loose, you might not earn...
Such proposal is like make you betting on your payment. You render a service and you don't know the exact price for it because it depends on external factors.
and why do they make such proposal?? I find it strange... ▲ Collapse
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