Stock Options

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Anonymous

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600 stock options for sales reps. 500 stock options for FAS reps. The options price is set by the board. Let's say that your start date is April 1 and the stock price is $430 and the next board meeting is in June. You might be looking at a strike price of $465. Alternatively, the best thing could be that the stock goes lower. Either way, the number of options are shitty.
 












if offered, I think 600 shares are a LOT better off than none. This company appears to really be going places. Stock that goes from $20 per share to $430 a share. Of course I would take it. Question is, how long is it to vest?
 






25% per year for four years. You only make money if the price is higher than what you got them for. For example, if the stock price today is $400/share and four years from now its $500/share you are "in the money" for $100 per share. If it's less than $400/ per share you are "out of the money" and your shares are worthless.
 






You do not get the full price of the stock once vested? I must be thinking of RSU's. If what you're saying is true, then the 500 share are worthless. This place seems to be more and more of a joke as time goes on. I regret agreeing to the interview. I guess it's good practice.
 






Best way to use stock options as an incentive is to offer them at a discount. Say a 30% discount. That way you can almost guarantee that you will make some money when you exercise them.
 






Compensation genius must work for Amgen along with the other big pharma trolls on this site. Seriously offer 30% discount on option pricing? Go back to Walmart where you belong
 






Regeneron stock closed at 488.87 on Friday. You receive 500 options valued at $244,435. You have the option to buy it at that price in 4 years. Let's say the stock increases by 10% and is now valued at $537.757 per share. You are in the money and you exercise your options and sell. You sell them for $268,878.50. That's a gross profit of $24,443.50. Then you have to deduct capital gains tax (20%) and that leaves you with $19,554.80 You also will have transaction fees to pay as well.
Here's where the value of working for a company with a high stock price comes in. Let's say the stock price was at $170 on Friday instead (which is where Amgen's stock price is). 500 shares are valued at $85,000. The stock increases in value by 10% over four years and the new price is $187. Your are in the money. You exercise your options for $93,500 and your gross profit is $8,500. Your Regeneron stock options' gross profit is 287% higher than if you worked for Amgen and they issued the same number of stock options to you!!
 












Anonymous said:
Regeneron stock closed at 488.87 on Friday. You receive 500 options valued at $244,435. You have the option to buy it at that price in 4 years. Let's say the stock increases by 10% and is now valued at $537.757 per share. You are in the money and you exercise your options and sell. You sell them for $268,878.50. That's a gross profit of $24,443.50. Then you have to deduct capital gains tax (20%) and that leaves you with $19,554.80 You also will have transaction fees to pay as well.
Here's where the value of working for a company with a high stock price comes in. Let's say the stock price was at $170 on Friday instead (which is where Amgen's stock price is). 500 shares are valued at $85,000. The stock increases in value by 10% over four years and the new price is $187. Your are in the money. You exercise your options for $93,500 and your gross profit is $8,500. Your Regeneron stock options' gross profit is 287% higher than if you worked for Amgen and they issued the same number of stock options to you!!
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I thought the strike price for the options is decided the week you start. So if the stock runs up higher- you have to hope it will get you another 10% per year. But it also has quite a bit of room to deflate. If Regeneron really wanted us- issue outright share that cannot be cashed in fir a few years. It makes the investment for the reps less risky.

Additionally- the options may be taxed as total comp so you would not receive the lesser taxable caoital gains rate.
 






Anonymous said:
I thought the strike price for the options is decided the week you start. So if the stock runs up higher- you have to hope it will get you another 10% per year. But it also has quite a bit of room to deflate. If Regeneron really wanted us- issue outright share that cannot be cashed in fir a few years. It makes the investment for the reps less risky.

Additionally- the options may be taxed as total comp so you would not receive the lesser taxable caoital gains rate.
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I fat fingered the iPhone- I know there are misspellings- but I believe I made my point.
 






Anonymous said:
Regeneron stock closed at 488.87 on Friday. You receive 500 options valued at $244,435. You have the option to buy it at that price in 4 years. Let's say the stock increases by 10% and is now valued at $537.757 per share. You are in the money and you exercise your options and sell. You sell them for $268,878.50. That's a gross profit of $24,443.50. Then you have to deduct capital gains tax (20%) and that leaves you with $19,554.80 You also will have transaction fees to pay as well.
Here's where the value of working for a company with a high stock price comes in. Let's say the stock price was at $170 on Friday instead (which is where Amgen's stock price is). 500 shares are valued at $85,000. The stock increases in value by 10% over four years and the new price is $187. Your are in the money. You exercise your options for $93,500 and your gross profit is $8,500. Your Regeneron stock options' gross profit is 287% higher than if you worked for Amgen and they issued the same number of stock options to you!!
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You only pay capital gains tax rate if you exercise your options then hold on to them for at least a year, in which they will be subject to market volatility. If you exercise them and cash out you will pay ordinary income on these options which will be around 43% so if you believe in the company, exercise them and keep them in REGN stock if you are in the money but do not want to take a chance then cash out and get taxed heavily.

Also if a company has a lower stock price they will probably give more options. It's the total value of the grant not the amount options that matter. If REGN was trading at 100 they would give enough options to be valued at the $244,000 # you quote.
 






You people crack me up wondering about these stock options which by the way are worth nothing right now regardless of how many shares you get offered. I have worked for several companies that gave me stock options and they usually are worth very little by the time they vest so don't go by that condo at the beach just yet. The predictions of this product being a blockbuster billion dollar drug are way overrated and fueling an already over inflated stock value.
 






Anonymous said:
You people crack me up wondering about these stock options which by the way are worth nothing right now regardless of how many shares you get offered. I have worked for several companies that gave me stock options and they usually are worth very little by the time they vest so don't go by that condo at the beach just yet. The predictions of this product being a blockbuster billion dollar drug are way overrated and fueling an already over inflated stock value.
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Regeneron's pipeline is solid. That is why the stock price is so high. Not many companies have a pipeline even close to theirs.
 






That is quite a gamble on the pipeline. The PE ratio is 154 for a potential future? Any hiccup and the stock drops once earnings are not there; Celg, gild, amgn are all under 30. Good luck with that stock staying up that high.
 






Anonymous said:
That is quite a gamble on the pipeline. The PE ratio is 154 for a potential future? Any hiccup and the stock drops once earnings are not there; Celg, gild, amgn are all under 30. Good luck with that stock staying up that high.
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Amgn had NOTHING new or impressive until they purchased Onyx. Celgene is a two hit wonder and had to buy Abraxis for one of those hits. They are all huge and have LOTS of overhead.
 






Anonymous said:
Regeneron's pipeline is solid. That is why the stock price is so high. Not many companies have a pipeline even close to theirs.
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Relax, I didn't say the company or pipeline are in trouble, the stock price is just too high. I made a killing at KOS with my options but I got in at the bottom not what most think is the top of this market. If the clinical studies product solid outcomes data on event reductions we will all do well if not this will be a struggle due to price and needle fatigue.
 






The pipeline may look impressive, but based on my interview experience; the management of the this company is a horrifying. The drugs don't sell themselves and I see plenty of launch failures related to this company. Time will tell!
 






Anonymous said:
The pipeline may look impressive, but based on my interview experience; the management of the this company is a horrifying. The drugs don't sell themselves and I see plenty of launch failures related to this company. Time will tell!
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Please give examples of launch failures....I'm not trying to argue just curious.
 












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