Just received my equity package and I’m a bit confused. At the current valuation of my startup, the price per share is $10 dollars, however my boss said that for the options I’m receiving they did a “fair market valuation” which means I get to pay $3.4 dollars per share when I decide to buy them. Is this common or does it sound weird?

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If they're options rather than RSUs then this is how it works. You exercise your options (once vested) at a certain price, essentially purchasing those shares at a discount, then pocket the spread between the price you exercised and the current value of those shares.

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Pre-IPO options always sound weird and can change dramatically at any point in time. Best you can do is verify the last valuation and try to understand how much you’re going to get diluted on future raises to arrive at a real number.

Not weird and in your case a nice little extra compensation

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