Hacker News Reader

He means VSOPs.

They aren't shares, but options. So if the company's valuation skyrocket you hit the jackpot, but if the company growth stales you get nothing.

Of course, RSUs are better, but VSOP has a non-zero chance of making you money, it isn't 100% though.

View on HN

It's not options either (that would be ESOPs), but actually a kind of bonus structure. If there is an exit event, as specified in the VSOP agreement, you get a bonus that should be the same as what real options would have been worth. They are taxed as normal income, but you do not have to pay tax when you receive them. In the past you would have to pay tax on real options when receiving them even though they'd most likely never pay out.

Reply on news.ycombinator.com