# Explain the stock options in a startup job offer to a candidate

A plain-language equity explainer for a candidate covering grant size, vesting, strike price, and what it could be worth.

- Topic: HR & Hiring
- Framework: Few-Shot
- Level: Standard
- Tags: HR & Hiring, Finance, Write, Explain & Teach, Fill-in Template
- Source: https://www.thinkwithprompt.com/prompts/explain-the-stock-options-in-a-startup-job-offer-to-a-candidate

## Prompt

```text
Write a plain-language explanation of the equity in a startup job offer, for me to send to a candidate.

**Grant:** [number of options or RSUs, type - ISO / NSO / RSU / EMI or local equivalent]
**Fully diluted shares outstanding:** [NUMBER, so we can show ownership %]
**Strike price and latest 409A or equivalent valuation:** [DETAILS]
**Latest preferred price per share:** [if we choose to share it]
**Vesting:** [e.g. 4 years, 1-year cliff, monthly after]
**Post-termination exercise window:** [e.g. 90 days / 7 years]
**Early exercise or acceleration terms:** [if any]
**Candidate's country:** [COUNTRY]
**Hypothetical exit values to illustrate:** [e.g. three company sale values - low, medium, high]

Write:
1. What they are getting, in one paragraph, including ownership percentage.
2. How vesting works, with a simple timeline of what vests by when.
3. What it costs to exercise, and when they might choose to.
4. A scenario table showing the potential pre-tax value at the hypothetical exit values I provided. Note that dilution from future rounds and liquidation preferences can reduce this.
5. What happens if they leave, are let go, or the company is acquired.
6. Key terms glossary (strike price, 409A, cliff, dilution, liquidity event).

Rules: no promises or predictions about future value; label all scenarios as illustrations. Use only the numbers I give; mark gaps as [CONFIRM]. Mention that tax treatment depends on the person and country, and suggest they speak to a tax advisor. Keep it under 600 words and friendly.
```

## What to fill in

- NUMBER, so we can show ownership %
- DETAILS
- if we choose to share it
- e.g. 4 years, 1-year cliff, monthly after
- e.g. 90 days / 7 years
- if any
- COUNTRY
- e.g. three company sale values - low, medium, high
- CONFIRM

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