What Happens to Employee Options When a 409A Valuation Changes?
When a 409A valuation changes, the strike price for newly granted employee stock options adjusts accordingly. Existing options remain unchanged, protecting earlier grants. A higher valuation increases future strike prices, while a lower valuation can make new options more attractive. These shifts influence employee incentives, retention, and overall compensation planning.
https://websarticle.com/wh...
When a 409A valuation changes, the strike price for newly granted employee stock options adjusts accordingly. Existing options remain unchanged, protecting earlier grants. A higher valuation increases future strike prices, while a lower valuation can make new options more attractive. These shifts influence employee incentives, retention, and overall compensation planning.
https://websarticle.com/wh...
What Happens to Employee Options When a 409A Valuation Changes? - Webs Article
How changes in 409A valuation impact employee stock options, equity value, taxes, and long-term compensation outcomes for startup teams.
https://websarticle.com/what-happens-to-employee-options-when-a-409a-valuation-changes/
01:18 AM - Nov 25, 2025
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