Why I will not exercise my GitLab stock options

Post by gtirloni » Wed, Apr 05, 2017, 2:20 AM UTC

5thaccount wrote: post #87

ryguytilidie wrote: post #81

Earlier quoted context omitted.

I guess at some point we should ask ourselves why "public complaints and these articles are mostly frowned on". I get that we should encourage professionalism, but this code of "don't say anything bad about your former employer" leads to a lot of startups getting away with pretty bad things. I feel like if a company has behaviors exposed and they are ashamed of those behaviors, their reaction should be to fix or elim…

...unless it is Uber, then you can say whatever you want, apparently. The general perception of what is right or wrong is always so situational, and that is weird to me. I agree with your comments, and I can see the other side as well (keep ones mouth shut because opening it likely hurts the individual the most), it just seems like the arguments are used so situationally, and I don't understand why. Maybe it is in ou…

Post by hkmurakami » Wed, Apr 05, 2017, 2:21 AM UTC

pjschlic wrote: post #101

hkmurakami wrote: post #75

Earlier quoted context omitted.

That'll apply to the strike price as well as the current "valutation", so the multiple factor between the two valuations should be around the same regardless (a strike price of a non trivial number like $0.27 suggests that a 409a valuation was already in place to price the options)

The original 4.8M valuation (which is his strike price - extrapolating from his share price and ownership %) has now increased to ~40M (extrapolated from 20M raise, estimating ~100M preferred shares valuation and 40% of that for 409A valuation[1]). This means 4k outlay for initial stock, but they are now valued at ~33.2k, incurring some short term capital gains of ~5.6k. This still seems like a steal, as is the value…

Post by underwater » Wed, Apr 05, 2017, 2:24 AM UTC

neltnerb wrote: post #74

hdhzy wrote: post #18

Earlier quoted context omitted.

I think the run-in referred to something different than the tweet. > After the run-in happened, I decided to lay low and focus on the job. I even stopped posting on Twitter, because the CEO already had questioned me about what I was writing.

From my reading of it, it was referring to OP's disagreement about the Service Engineer team taking on correcting the internet whenever someone is wrong about GitLab with a staff of five people. I still think they should have just taken the options... the idea that with a current $100M valuation they won't end up being worth at least $5M doesn't seem justified based only on just these anecdotes. I assume the contract…

Post by achompas » Wed, Apr 05, 2017, 2:26 AM UTC

neltnerb wrote: post #74

hdhzy wrote: post #18

Earlier quoted context omitted.

I think the run-in referred to something different than the tweet. > After the run-in happened, I decided to lay low and focus on the job. I even stopped posting on Twitter, because the CEO already had questioned me about what I was writing.

From my reading of it, it was referring to OP's disagreement about the Service Engineer team taking on correcting the internet whenever someone is wrong about GitLab with a staff of five people. I still think they should have just taken the options... the idea that with a current $100M valuation they won't end up being worth at least $5M doesn't seem justified based only on just these anecdotes. I assume the contract…

Post by owenversteeg » Wed, Apr 05, 2017, 2:32 AM UTC

bdonlan wrote: post #115

owenversteeg wrote: post #52

Earlier quoted context omitted.

Don't some banks let you take out a loan for the amount of the capital gains taxes using the shares as collateral? I'm not sure but I could've sworn I heard about this.

It's called margin, and you can only margin (use as collateral) shares that are liquid - i.e. publicly traded.