When looking at job postings there are many that offer a salary, and some offer stock in the company. It may be tempting to pick the company that offers stock options as you could be rich later. Here’s why I don’t, and why I don’t want any stock in a company that I’m working at.
The salary most likely will be lower because of the stock options, the salary is right now what pays the bills.
Those stock options may vary based on many different factors. Which means they may advertise one thing but end up something completely different.
When you get these stock options depends on the company. Some give them to you on day one, and in some you need to work a certain length of time before you get it.
What happens to those stock options after you leave the company (or get fired)? Some companies do let you keep the stock. But in most cases you will have to give them back to the company (which means it’s completely useless to you). Some companies do pay you for the return of that stock. It does give you an little extra money but it may not be what it’s worth when the company goes public.
Having stock means you are more likely to put in more time at work, because you feel the pay off will be worth it later. But are you willing to risk burn-out? Are you willing to work all those hours and it not pay off? It isn’t something I want at this point in my life.
At one point the company will go public or sell to another company. What happens to the stock you own? Your stock will either become stock at that other company, or you will get an actual stock on the stock market. This could be a good or bad thing, depending on what you want the future to be. Depending on how many shares and the type you have will depend on if you get a vote or even a say on the future of the company. Is that something you want? Do you want to have to keep track of the price of the stock and sell and buy at the right time?
For all these reasons, I don’t want stock at any company I currently or have worked for. I don’t want that extra risk and it won’t pay off in the long run.
This is post number 77 as part of 100 Days To Offload.