Fisker CAO Stock Options

@fiskernw Basically when the employee(CAO) joined the company or at a later time, Fisker Inc offered stock options to the employee at the option price was set at $7.47 for a number of stocks at that particular time, and the employee gets to exercise the option when the stock options are vested.

i.e.  scenario

1.  New employee joined

2. Company offers stock options to the employee say 10k shares vesting in 5 years at a certain price.

  - So, basically 2k shares a year.

  - Normally more options for higher position in the company.

  - This is used to mainly incentivize the employee to work and stay with the company.  Company performs well, employee gets more benefit via stock option.

3. Employee stays at the company for 2 years, therefore 4k shares are vested.

4. Employee can exercise the option for up to 4k shares at the set price from the offering.

5. Employee exercises the option for 4k shares @ the set price, regardless of what the stock price. 

  - Usually always, employee exercises the option when the stock price is higher than the offering price from the company then sell the stocks at market price for a profit.

  - Or ex-employee exercises the option due to the agreement during the offering that once you are no longer with the company, you have to exercise the option within a certain number of days, else you lose you option.

Hope this sheds some light for you...

@fibrepunk It does indeed, thank you! 

I've only heard of stock options in companies but never experienced it myself so this definitely helps explain the circumstances.