Alibaba employee stock options
The great thing about working on Wall Street is that you can get fabulously rich without risking your own money. Less noticed is another feature that makes Alibaba a source of wonder: Its practice of issuing absolutely gigantic, incredibly lucrative stock grants to employees and chosen outsiders.
In a table on pagethe company lists its equity grants to employees, directors, and groups of selected outsiders, including vendors, starting in mid They fall into two categories: Over the last 15 months, Alibaba has made 12 grants of restricted stock and RSUs totaling Those units vest over four years; each year, employees receive one-fourth of their grant in regular shares.
So what would those grants be worth if they all vest?
Alibaba Group Holding Limited (BABA) Option Chain - Stock Puts & Calls - bozirixejiwi.web.fc2.com
The increase could take the form of a big pop following the opening. Or the offering price could be re-priced upwards and then make a smaller pop. Alibaba is also alibaba employee stock options rewarding its employees with stock options. Since June of last year, it has issued eight option grants for a total of Naturally, not all the restricted stock and options will eventually turn into shares.
Employees will leave and get fired before their grants fully vest. But given the gigantic wealth employees are accumulating difference between options and spread betting year they stay, the incentive to remain at Alibaba is tremendous.
As IPO nears, Alibaba prepares employees for $40 billion windfall | Reuters
Hence, we can assume that the overwhelming bulk of the grants will eventually become Alibaba shares. Not all the grants are going to employees: Alibaba has 22, employees. So proceed with alibaba employee stock options. In fact, Alibaba has learned a trick from Wall Street. Page 7 of the prospectus describes something called the Directed Share Program. We all know that Wall Street benefits immensely when an IPO jumps at the opening, since grateful institutional investors reward the banks with rich commissions.
The Directed Share Program is also designed to profit from a pop: Term Sheet Term Sheet — Wednesday, June Etsy Is Reorganizing Its Workforce, Which Includes More Layoffs.
Fortune eBay Promises to Match Prices Against Amazon, Walmart, and More. Alibaba and the kingdom of sumptuous stock grants.
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