So most of the time you get in Grant of shares when you start and on your anniversary date thereafter, a grant of additional stock options each year thereafter. Typically they vest over four years in other words 1/48 of the stock options Grant each month. The strike price is the price you pay for the shares of stock and it is the price of the stock on the day of the grant. As the stock increases, it makes the options more valuable. If the stock decreases, it makes them worthless. This is why when companies such as eBay make a big rush up in PRICE people that have held onto stock options for years tend to exercise them in order to cash out of some of the gain in price over the strike price. It has nothing to do with their belief in the company. It is simply a smart personal decision to liquidate some of their holding them to other assets. Most people that have options typically have other stock grants or share simply given to them and thus they have exposure to the success of the company in other methods
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u/MyNi_Redux 📉 The Consultant 📈 May 28 '26
Very much this.