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by arcticbull 2137 days ago
Not to mention ISOs are far better for employees than NSOs. Moving to RSUs actually reduces the risk and reward for employees as switching over, startups usually cut the grant size substantially (as they are issuing instruments that have intrinsic value at issue rather than no intrinsic value at issue).

tl;dr: Founder shares >>> ISO > NSO >> RSU in terms of risk and reward.

1 comments

ISOs are not universally better. They have a 24 month time requirement while NSOs only have a 12 month requirement.
I believe selling within the 24 month window is considered a disqualifying disposition which effectively just converts your ISOs into NSOs [1]

[1] https://www.mystockoptions.com/content/what-is-a-disqualifyi...