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This is a very interesting situation. Generally at startups, is there no room to negotiate to get RSUs instead of options?

What is the reason they give options instead of options? They want to reduce the amount of stock people own that no longer work at the company over time?

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RSU's are taxed on vesting, so it would be worse than options if anything.

Best are options with early exercise, but they're still not perfect (you have a possibly significant upfront cost to exercise them).

Really they should just change the AMT rules.

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