05-14-2013, 04:24 AM
As far as the options, they usually are granted with 5 years(could be more or less) BEFORE they can be exercised and maybe 10 years before they expire. If a person is terminated/resigns/separates from service, the options are immediately exercisable but still have the expiration. Terminating service with options that are way in the money is a plus if you have a volatile stock. Many have seen real money go away watching the stock sink to underwater waiting for that 5 year ability to exercise. Know a guy who intentionally got himself fired so that he would be immediately able to exercise his highly appreciated options. Did not want to see multi-millions go away in the 3 years till he was able to cash in.
L Ron Rules!