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The long-term capital gains rates are lower, and early exercising your options can allow you to start the holding period clock earlier. Early exercising at the time of your grant can help you avoid higher taxes later.
The merits of Stock Options vs RSUs primarily depends on the stage of the company. Stock Options are usually better for both employee and employer at an early stage company. For a later stage company, RSUs are usually better for both.
If a good leaver, the recipient will keep the number of options already vested, and any remaining options will be cancelled. They'll then need to exercise these options into shares within 90 days. Any options not exercised within this timeframe will be cancelled. If a bad leaver, they will lose everything.
Stock options are a way for companies to motivate employees to be more productive. Through stock options, employees receive a percentage of ownership in the company. Stock options are the right to purchase shares in a company, usually over a period and ing to a vesting schedule.
Option grants can give employees a sense of ownership in the company and motivate them to work harder and contribute to its success. Option grants allow employees to diversify their investment portfolio and potentially reduce their risk.
Remember: If you hope to purchase and sell your stock someday, accepting your stock option grant is the first step you have to take.It doesn't cost anything to accept the grant, and you're not obligated to actually exercise your options.