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Merge pull request clef#46 from jdross/patch-1
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Correct an error in stock option description
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B committed Oct 9, 2015
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6 changes: 3 additions & 3 deletions Hiring Documents/Guide to Your Equity.md
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Expand Up @@ -10,11 +10,11 @@ Owning stock in Clef gives you a stake in our success. As Clef grows and increas

## Stock Options

At Clef, we give equity grants in the form of Incentive Stock Options (ISOs). It’s called an option because you have the *option* to buy Clef stock later at the same price it was worth when the option was granted. So if a share of Clef stock is worth $1 today and we grow so its worth $20 in a few years, you’ll still be able to buy it for $1 (and then sell it immediately for a profit of $19).
At Clef, we give equity grants in the form of Incentive Stock Options (ISOs). It’s called an option because you have the *option* to buy Clef stock later at the same price it was worth when the option was granted. So if a share of Clef stock is worth $1 today and we grow so it’s worth $20 in a few years, you’ll still be able to buy it for $1 (and then sell it immediately for a profit of $19).

This is a little bit of a roundabout way to give you ownership of Clef, but the reason we give options instead of straight stock is that it keeps you from being taxed on the stock until you actually use it.
The reason we give stock options instead of straight stock is that it keeps you from being taxed on the stock until you actually use it.

If we gave you $10,000 worth of Clef stock today, you would have to pay thousands of dollars in taxes this year. If we give you $10,000 worth of stock options, then you don’t have to pay any taxes until you exercise them (more on exercising later).
If we gave you $10,000 worth of Clef stock today, you would have to pay thousands of dollars in taxes this year. If we give you options for $10,000 worth of stock, you don’t have to pay any taxes until you exercise them (more on exercising later).

## Vesting

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