I have found that many candidates interviewing at emerging orthopedic companies do not really understand the "stock equity" portion of their Job Offer. Likewise, the company executives writing the Job Offer often do not understand how an incoming employee might value such equity or even understand it.
Let me try to pull the covers back for you.
There are 5 basic types of equity that employees can have in a company. These include:
1/Common Stock: This is the most common form of equity, and it represents ownership in the company. Common shareholders have the right to vote on important company matters, such as the election of board members and major business decisions.
2/Preferred Stock: This type of equity gives shareholders priority over common shareholders when it comes to receiving dividends and assets in the event of the company's liquidation. It is often said that the preferred shareholders are "first in line" or that they "eat first" at the buffet line. Preferred shareholders may also have additional rights, such as the ability to convert their shares into common stock.
3/Restricted Stock: RSUs (restricted stock units) are a type of equity is subject to certain restrictions...
