Nqso decision

Hey everyone looking for a little insight and advice. I currently work for a start up and have been for the past 4 years. It has been a great place to work and advanced my career(first professional job). However lately it's been pretty painful to go into work each day especially since I thought we would be bought or gone public by now.

Here is my dilemma. I have been put in a department that was supposed to make the millions of dollars but I don't believe we are there yet and may not get there at all. I've had recruiters and I know of companies hiring that I would fit very well in. Currently I'm paid about 25-30k below market value and my company doesn't 401k match, which I'm putting in 15%. However I have nqso I could own if we sold that are currently worth around the low six figures which Is almost all profit to me. If I quit and buy these stocks I would be taxed 30% on an imaginary amount the stock is worth. And I don't have that kinda money to spare.

Is it worth the risk to stay or leave buy no stock and make up 100k in the next two years with the salary bump and 401k matching?

 

What if the company ipo's next year?

 

It wont and that is my dilemma. It wont go IPO because the tech is not matured enough and currently not working in a commercial aspect. It could be potentially acquired by some company although I think that is highly unlikely, and if so still my stock wouldn't be worth a whole lot right now.

I have been given ever more stock but at a different strike price so my profits are miniscule compared to my first stock options. But Id have to work another four years to fully vest those stocks.

 

Going back to this, does anyone know if NQSO can be transferred into a 401k or something if I leave the company?

 

I have no idea on your NQSO.
But if you don't feel happy, look for a new job, especially if you're being paid below the average.

Just note the corporate world will be a lot different.
I assume things are pretty laid back and you can Get away with a lot of stuff at your current job with the start up. Most of that stuff doesn't fly at the big public companies.


You just gotta weigh the options and see what will work for you. Just my two cents.

 

Main reason why I have stayed at the company is the amount of control/respect/get away with since I am now the 3rd employee with the most seniority. I have a lot of the new execs come to me for answers/questions/guidance and I am only just an engineer.

However, we have gone from a 30+ person company now to 15 because of bad management and no real business plan. I have also been pretty stagnant in my career advancement, I haven't been learning a lot from senior engineers which is hard in a startup to begin with. I can teach new people a lot about a lot of things so they think I have a lot of knowledge but to me it is not enough. I realize most start ups don't succeed, we have a great angel investor who wants to see it through but the technology doesn't seem to be a good fit for the application. Reason I am seeing if I can do anything with a NQSO without getting hit with a 30% tax.

 

I wish I could help on that.
But best of luck with whatever decision you make!