iioftexas
New Member
Cash: $ 0.65
Posts: 3
Joined: 30 Nov 2011
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| Investment Profit Split |
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Hello. First-time poster here, and I'm looking for advice on what I think is a unique situation.
I work for a private company. A coworker of mine is about to leave the company, and he mentioned to me that he isn't going to exercise all of his stock options upon leaving, which means they'd be forfeited and worthless. I'm high on the company, so I've offered to give him the money to buy them, and we'll split the profits. He is interested in doing this since it comes as no risk to him.
Although there are many issues here, including tax issues, I don't want to focus on those. I would simply like advice on what a fair deal would be in the profit split. What percentage should I get as the person ponying up the cash, and what percentage should my coworker get for bringing the opportunity to the table?
Any opinion on this would be much appreciated.
Last edited by iioftexas on Thu Dec 01, 2011 12:27 am; edited 1 time in total |
Wed Nov 30, 2011 6:07 pm |
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iioftexas
New Member
Cash: $ 0.65
Posts: 3
Joined: 30 Nov 2011
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Thanks a bunch for the response.
So by "15% finders fee", do you mean that I should get 85% of the profits and my coworker should keep 15%, and therefore the following example holds?
market $15
exercise $5
on an 85/15 split:
my cost $5.00
my 85% of profits $8.50
his cost $0
his 15% of profits $1.50
Also, assuming I interpreted your "15% finders fee" comment correctly, what made you change your mind from 50/50 to 85/15 based on the fact that the company is currently private and not public?
And lastly, I think this goes without saying, but just in case... our company's goal is to eventually either go public or be acquired, so it's at that liquidation event when profit would finally be realized.
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Thu Dec 01, 2011 12:09 am |
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iioftexas
New Member
Cash: $ 0.65
Posts: 3
Joined: 30 Nov 2011
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Tim, thanks a bunch for your input. This should help us reach a deal. 
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Sat Dec 03, 2011 2:05 pm |
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Abana
New Member
Cash: $ 0.80
Posts: 4
Joined: 27 Jan 2012
Location: new york
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With tax season just passed, you may still be hurting from the results. If you requested an extension and haven't filed yet, this topic might be very helpful to you. Aside from the profit potential that you can realize from trading commodities, there are handsome tax benefits as well.
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Fri Jan 27, 2012 9:03 am |
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