23 Benefits
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Full-time Employees Benefits
Benefits
Page Title
Stock Options
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Stock options are given to some full-time employees based on the agreement included in their initial employment offer. While stock options aren't the same as shares in a company, they are a type of compensation or bonus—it's a way for you to participate in the growth of your company. If the company succeeds and grows, your options will become more valuable.
Banzai stock went from $1/stock in 2020 to almost $2/stock in 2021. This kind of return won't always happen, but it shows how the value of your stock options can change over time.
The specifics of the exercise price, the number of shares included, and the vesting schedule varies employee to employee. If you’re interested in learning more, talk to your manager directly and review your stock options agreement.
Banzai stock went from $1/stock in 2020 to almost $2/stock in 2021. This kind of return won't always happen, but it shows how the value of your stock options can change over time.
The specifics of the exercise price, the number of shares included, and the vesting schedule varies employee to employee. If you’re interested in learning more, talk to your manager directly and review your stock options agreement.
Highlights
Employees May Earn More Options Over Time
Unique Agreement for Each Employee
Frequently Asked Questions
- What is an IPO?IPO stands for initial public offering and basically happens when a company "goes public," meaning they begin to sell shares on a stock exchange.
- Why would I want stock options?Buying stock in your company allows you to benefit as your company grows in value. Stock options help with this because the exercise price (the pre-set price of the stocks in your options) can be significantly lower than the value of the stocks when you're ready to buy or following an IPO. You may choose to sell your stocks immediately after the IPO (though you may have to wait until after a lock-up period) or hang onto them for months or years.
- How do stock options work?As the name suggests, stock options are the option to purchase stocks at a set price. This price is determined when you’re granted your stock options. You cannot exercise your options, or purchase the stocks, until they vest.
- Do I have to purchase the stocks I was given options for?No. You may choose to purchase all, part, or none of the options you were granted. If you choose not to purchase them, you’ll simply lose access to the option when it expires.