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1c37325 | 1 | {"text": " The fourth dimension is what price? The price dimension has multiple alternatives to consider. Should you grant them at the current pay market value, or a small discount to the F&V, or a deep discount to the F&V, which could even mean granting them at face value? There are accounting implications to consider here as well. As of now, any discount to the current F&V you provide on stock options needs to be written off as an expense in your P&L account, which reduces your profits. So for instance, if your current F&V is $30, but you grant your options at $20, the difference or discount of $10 multiplied by the total options granted needs to be written off as an expense in your profit and loss account. But these guidelines can change, so you need to check with your accountant at the time of granting these stock options. You also need to consider why you would like to grant them at a discount. Do you have a compelling reason to do so? For instance, let us say you have team members who have been with you for the last two years and have created value from, say, $10 per share to $30 per share. Now a new group of people joins and you offer them options at $20 per share. Should they board the bus at $20 or should they board it at $30 and gain only to the extent of value they add beyond $30, since they probably did not contribute to bringing the value up to $30 in the past. These are the perspectives you need to balance while deciding on the strike price of the options.", "segments": [{"id": 0, "seek": 0, "start": 0.0, "end": 5.84, "text": " The fourth dimension is what price?", "tokens": [50363, 383, 5544, 15793, 318, 644, 2756, 30, 50655], "temperature": 0.0, "avg_logprob": -0.2272960083394111, "compression_ratio": 1.6564102564102565, "no_speech_prob": 0.14345252513885498}, {"id": 1, "seek": 0, "start": 5.84, "end": 9.96, "text": " The price dimension has multiple alternatives to consider.", "tokens": [50655, 383, 2756, 15793, 468, 3294, 14693, 284, 2074, 13, 50861], "temperature": 0.0, "avg_logprob": -0.2272960083394111, "compression_ratio": 1.6564102564102565, "no_speech_prob": 0.14345252513885498}, {"id": 2, "seek": 0, "start": 9.96, "end": 15.56, "text": " Should you grant them at the current pay market value, or a small discount to the F&V, or", "tokens": [50861, 10358, 345, 7264, 606, 379, 262, 1459, 1414, 1910, 1988, 11, 393, 257, 1402, 9780, 284, 262, 376, 5, 53, 11, 393, 51141], "temperature": 0.0, "avg_logprob": -0.2272960083394111, "compression_ratio": 1.6564102564102565, "no_speech_prob": 0.14345252513885498}, {"id": 3, "seek": 0, "start": 15.56, "end": 21.84, "text": " a deep discount to the F&V, which could even mean granting them at face value?", "tokens": [51141, 257, 2769, 9780, 284, 262, 376, 5, 53, 11, 543, 714, 772, 1612, 21787, 606, 379, 1986, 1988, 30, 51455], "temperature": 0.0, "avg_logprob": -0.2272960083394111, "compression_ratio": 1.6564102564102565, "no_speech_prob": 0.14345252513885498}, {"id": 4, "seek": 0, "start": 21.84, "end": 25.64, "text": " There are accounting implications to consider here as well.", "tokens": [51455, 1318, 389, 14317, 10939, 284, 2074, 994, 355, 880, 13, 51645], "temperature": 0.0, "avg_logprob": -0.2272960083394111, "compression_ratio": 1.6564102564102565, "no_speech_prob": 0.14345252513885498}, {"id": 5, "seek": 2564, "start": 25.64, "end": 30.48, "text": " As of now, any discount to the current F&V you provide on stock options needs to be", "tokens": [50363, 1081, 286, 783, 11, 597, 9780, 284, 262, 1459, 376, 5, 53, 345, 2148, 319, 4283, 3689, 2476, 284, 307, 50605], "temperature": 0.0, "avg_logprob": -0.11661175727844238, "compression_ratio": 1.7568807339449541, "no_speech_prob": 0.45723196864128113}, {"id": 6, "seek": 2564, "start": 30.48, "end": 36.56, "text": " written off as an expense in your P&L account, which reduces your profits.", "tokens": [50605, 3194, 572, 355, 281, 10907, 287, 534, 350, 5, 43, 1848, 11, 543, 12850, 534, 10177, 13, 50909], "temperature": 0.0, "avg_logprob": -0.11661175727844238, "compression_ratio": 1.7568807339449541, "no_speech_prob": 0.45723196864128113}, {"id": 7, "seek": 2564, "start": 36.56, "end": 43.84, "text": " So for instance, if your current F&V is $30, but you grant your options at $20, the difference", "tokens": [50909, 1406, 329, 4554, 11, 611, 534, 1459, 376, 5, 53, 318, 720, 1270, 11, 475, 345, 7264, 534, 3689, 379, 720, 1238, 11, 262, 3580, 51273], "temperature": 0.0, "avg_logprob": -0.11661175727844238, "compression_ratio": 1.7568807339449541, "no_speech_prob": 0.45723196864128113}, {"id": 8, "seek": 2564, "start": 43.84, "end": 49.32, "text": " or discount of $10 multiplied by the total options granted needs to be written off as", "tokens": [51273, 393, 9780, 286, 720, 940, 33096, 416, 262, 2472, 3689, 7520, 2476, 284, 307, 3194, 572, 355, 51547], "temperature": 0.0, "avg_logprob": -0.11661175727844238, "compression_ratio": 1.7568807339449541, "no_speech_prob": 0.45723196864128113}, {"id": 9, "seek": 2564, "start": 49.32, "end": 52.8, "text": " an expense in your profit and loss account.", "tokens": [51547, 281, 10907, 287, 534, 7630, 290, 2994, 1848, 13, 51721], "temperature": 0.0, "avg_logprob": -0.11661175727844238, "compression_ratio": 1.7568807339449541, "no_speech_prob": 0.45723196864128113}, {"id": 10, "seek": 5280, "start": 52.8, "end": 57.12, "text": " But these guidelines can change, so you need to check with your accountant at the time", "tokens": [50363, 887, 777, 9949, 460, 1487, 11, 523, 345, 761, 284, 2198, 351, 534, 42627, 379, 262, 640, 50579], "temperature": 0.0, "avg_logprob": -0.1156118883944974, "compression_ratio": 1.6416666666666666, "no_speech_prob": 0.14530843496322632}, {"id": 11, "seek": 5280, "start": 57.12, "end": 59.86, "text": " of granting these stock options.", "tokens": [50579, 286, 21787, 777, 4283, 3689, 13, 50716], "temperature": 0.0, "avg_logprob": -0.1156118883944974, "compression_ratio": 1.6416666666666666, "no_speech_prob": 0.14530843496322632}, {"id": 12, "seek": 5280, "start": 59.86, "end": 64.36, "text": " You also need to consider why you would like to grant them at a discount.", "tokens": [50716, 921, 635, 761, 284, 2074, 1521, 345, 561, 588, 284, 7264, 606, 379, 257, 9780, 13, 50941], "temperature": 0.0, "avg_logprob": -0.1156118883944974, "compression_ratio": 1.6416666666666666, "no_speech_prob": 0.14530843496322632}, {"id": 13, "seek": 5280, "start": 64.36, "end": 67.8, "text": " Do you have a compelling reason to do so?", "tokens": [50941, 2141, 345, 423, 257, 13206, 1738, 284, 466, 523, 30, 51113], "temperature": 0.0, "avg_logprob": -0.1156118883944974, "compression_ratio": 1.6416666666666666, "no_speech_prob": 0.14530843496322632}, {"id": 14, "seek": 5280, "start": 67.8, "end": 73.36, "text": " For instance, let us say you have team members who have been with you for the last two years", "tokens": [51113, 1114, 4554, 11, 1309, 514, 910, 345, 423, 1074, 1866, 508, 423, 587, 351, 345, 329, 262, 938, 734, 812, 51391], "temperature": 0.0, "avg_logprob": -0.1156118883944974, "compression_ratio": 1.6416666666666666, "no_speech_prob": 0.14530843496322632}, {"id": 15, "seek": 5280, "start": 73.36, "end": 79.67999999999999, "text": " and have created value from, say, $10 per share to $30 per share.", "tokens": [51391, 290, 423, 2727, 1988, 422, 11, 910, 11, 720, 940, 583, 2648, 284, 720, 1270, 583, 2648, 13, 51707], "temperature": 0.0, "avg_logprob": -0.1156118883944974, "compression_ratio": 1.6416666666666666, "no_speech_prob": 0.14530843496322632}, {"id": 16, "seek": 7968, "start": 79.68, "end": 85.52000000000001, "text": " Now a new group of people joins and you offer them options at $20 per share.", "tokens": [50363, 2735, 257, 649, 1448, 286, 661, 15449, 290, 345, 2897, 606, 3689, 379, 720, 1238, 583, 2648, 13, 50655], "temperature": 0.0, "avg_logprob": -0.11748481549714741, "compression_ratio": 1.6740088105726871, "no_speech_prob": 0.4118506610393524}, {"id": 17, "seek": 7968, "start": 85.52000000000001, "end": 91.0, "text": " Should they board the bus at $20 or should they board it at $30 and gain only to the", "tokens": [50655, 10358, 484, 3096, 262, 1323, 379, 720, 1238, 393, 815, 484, 3096, 340, 379, 720, 1270, 290, 4461, 691, 284, 262, 50929], "temperature": 0.0, "avg_logprob": -0.11748481549714741, "compression_ratio": 1.6740088105726871, "no_speech_prob": 0.4118506610393524}, {"id": 18, "seek": 7968, "start": 91.0, "end": 98.16000000000001, "text": " extent of value they add beyond $30, since they probably did not contribute to bringing", "tokens": [50929, 6287, 286, 1988, 484, 751, 3675, 720, 1270, 11, 1201, 484, 2192, 750, 407, 8676, 284, 6079, 51287], "temperature": 0.0, "avg_logprob": -0.11748481549714741, "compression_ratio": 1.6740088105726871, "no_speech_prob": 0.4118506610393524}, {"id": 19, "seek": 7968, "start": 98.16000000000001, "end": 102.60000000000001, "text": " the value up to $30 in the past.", "tokens": [51287, 262, 1988, 510, 284, 720, 1270, 287, 262, 1613, 13, 51509], "temperature": 0.0, "avg_logprob": -0.11748481549714741, "compression_ratio": 1.6740088105726871, "no_speech_prob": 0.4118506610393524}, {"id": 20, "seek": 7968, "start": 102.60000000000001, "end": 107.84, "text": " These are the perspectives you need to balance while deciding on the strike price of the options.", "tokens": [51509, 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