OneCFO's KwentuOne: Employee Stock Options Guide - Unveiling The Terms You Need To Know | Episode #8

Employee Stock Options are gaining traction again with a growing number of startups. With their tight budget, employee stock options are a way to attract and hire great talent to join in their startup journey. It's also a way to motivate and retain the core team that helps build the business.

Before offering employee stock options, know the terms surrounding this form of equity compensation and the regulatory requirements that our Bosses extensively discussed in this video.

For employees, this video guides why you should take on the offer and how to exercise these options and be gainfully rewarded.

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— Contents of this video —

⏱️Timestamps:

0:00 - Intro
02:51 - Why stock options and equity compensation are common in Startups?
07:44 - How do stock options work, and the terms used to define them?
09:11 - Vesting Conditions
11:02 - Cliff Vesting
12:19 - Strike & Exercise Price
13:38 - What is the difference between Par Value and Fair Value on stocks?
14:43 - 409A Valuation
15:42 - Fair Market Valuation
18:09 - Kung ikaw ay isang startup employee anong mas pipiliin mo Stock Option or Cash Compensation?
23:35 - Paano ang proseso ng pagbili ng stock options at exercise price?
32:03 - What are the SEC requirements that regulate stock options?
34:33 - Requirements and Provisions of Equity-Based Compensation by BIR and SEC
35:50 - Stock appreciation rights
37:32 - Taxes that are related to Stock Options
41:44 - Employee Stock Option Pool (ESOP) explained
44:12 - Outro

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OneCFO is a tech-enabled company providing CFO, Bookkeeping, Tax, and Payroll services to startups and small businesses. As a business owner, you have a lot on your plate. With OneCFO, you can focus on running and growing your business while we provide you with quick, efficient, and affordable financial services. We are your outsourced finance department!

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