Employee equity, explained

ISOs (incentive stock options) give you the right to buy shares at a fixed strike price. They can have favorable tax treatment, but exercising can trigger the alternative minimum tax (AMT).

NSOs (non-qualified stock options) work the same way mechanically, but the spread at exercise is generally taxed as ordinary income.

RSUs (restricted stock units) are a promise of shares that become yours as they vest. In private companies, many RSUs are “double-trigger”: they need both time-based vesting and a liquidity event to fully settle.

RSAs and common stock are actual shares you own (sometimes subject to repurchase rights while unvested).

A typical schedule vests over four years with a one-year cliff: nothing vests for the first year, then a quarter of the grant vests at once, and the rest accrues monthly or quarterly. Your grant agreement is the source of truth; schedules vary.

Options usually come with a post-termination exercise window, commonly 90 days, sometimes longer. Vested options not exercised inside the window are typically forfeited. This deadline is the single most expensive date employees forget, which is why deadline tracking exists in ExitCue.

Private shares don't have a public ticker. Value estimates come from sources like recent funding rounds, 409A valuations (used for setting strike prices), and observed secondary-market activity. Each measures something different; all are estimates. Whatever number you see, remember that private shares are illiquid and transfer-restricted. Turning shares into cash requires an eligible buyer and, usually, company approval.

ExitCue keeps your grants, vesting, estimated value, and deadlines in one place, free. Check my company →