How to Ask Your Boss for Stock Options

Stock options are an increasingly valued benefit in the job market. Here's how to make sure you get your fair share.

Instructions

Difficulty: Moderately challenging

1. Network. The best way to find out how much you can reasonably ask for is to find out the going rate in your market. In addition to trade associations and acquaintances, check out online discussion forums. People will often be more honest if they have a cloak of anonymity.
2. Consider whether you really want options. Remember, not all start-ups end up going public. Once a company goes public, stock market fluctuations mean you can actually lose money exercising options.
3. Keep an open mind. Most start-ups offer options with the expection that you will accept a lower salary and fewer benefits than you would at an established company in exchange for the possibility of cashing in later.
4. Be realistic. Yes, there are millionaire receptionists, but the more pivotal your contribution to a company, the more options you can expect.
5. Stress your unique contribution to the company if you're already employed there. Although it is more difficult to negotiate options if you're already working at a company, your boss will probably try to do something if there's a competitive market for your services.
6. Don't negotiate options until you've received a job offer. You're in a stronger bargaining position if a company's made a firm decision that it wants you.

Tips & Warnings

• Pay attention to when you become eligible for options. If a company is going public soon, you may be better off getting fewer options sooner than more options later.
• Remember, not all stock options are created equal. It's one thing to accept a lower rate of pay in exchange for stock options at a hot, well-funded start-up; it's another to do so at a company that's already public in a mature market.

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