What Happens to Employee Options When a 409A Valuation Changes?


When a 409A valuation changes, the strike price for newly granted employee stock options adjusts accordingly. Existing options remain unchanged, protecting earlier grants. A higher valuation increases future strike prices, while a lower valuation can make new options more attractive. These shifts influence employee incentives, retention, and overall compensation planning.


https://websarticle.com/what-happens-to-employee-options-when-a-409a-valuation-changes/
What Happens to Employee Options When a 409A Valuation Changes? When a 409A valuation changes, the strike price for newly granted employee stock options adjusts accordingly. Existing options remain unchanged, protecting earlier grants. A higher valuation increases future strike prices, while a lower valuation can make new options more attractive. These shifts influence employee incentives, retention, and overall compensation planning. https://websarticle.com/what-happens-to-employee-options-when-a-409a-valuation-changes/
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What Happens to Employee Options When a 409A Valuation Changes? - Webs Article
How changes in 409A valuation impact employee stock options, equity value, taxes, and long-term compensation outcomes for startup teams.
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