Shares and share options
Discussion
Hi All,
I have been offered a package for a new job; the package includes a certain value of shares and share options (split 50/50 between the two). I can redeem the shares after 3 years and the share options 25% in year 1, 25% in year 2, 25% in yr 3 and 25% in year 4. I also get extra share options each year. I have no experience of shares or options at all and I have tried doing some reading, but given I will need to feedback to them tomorrow morning I could really do with some info!
Regarding the shares I can redeem in 3 years; does this mean I am being given a number of shares equal to the current value they say they will give, and that in 3 years I will be eligible to cash them in, so if each share is worth more in 3 years than now, I will have more actual value than the value I am being told now?
Is this cash from cashing in eligible to be taxed and NI if I cash in in 3 years?
How do share options work? Does it mean I have to actually buy the shares at a lower value than they are worth, and then you can cash them in and keep the difference?
I am pretty clueless about all this so any advice is most welcome!
I have been offered a package for a new job; the package includes a certain value of shares and share options (split 50/50 between the two). I can redeem the shares after 3 years and the share options 25% in year 1, 25% in year 2, 25% in yr 3 and 25% in year 4. I also get extra share options each year. I have no experience of shares or options at all and I have tried doing some reading, but given I will need to feedback to them tomorrow morning I could really do with some info!
Regarding the shares I can redeem in 3 years; does this mean I am being given a number of shares equal to the current value they say they will give, and that in 3 years I will be eligible to cash them in, so if each share is worth more in 3 years than now, I will have more actual value than the value I am being told now?
Is this cash from cashing in eligible to be taxed and NI if I cash in in 3 years?
How do share options work? Does it mean I have to actually buy the shares at a lower value than they are worth, and then you can cash them in and keep the difference?
I am pretty clueless about all this so any advice is most welcome!
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