Share Options

In recruiter context

Two main UK schemes: EMI (Enterprise Management Incentive — most common, generous tax treatment) and unapproved options. EMI options have a strike price set at grant, typically vest over 4 years with a 1-year cliff, and you exercise (buy the shares) on a liquidity event (IPO, acquisition) or before leaving. UK tax on EMI: capital gains tax at 10% on the gain between strike and sale price (10x better than RSU income tax). The trade-off vs RSUs: options can become worthless if the company doesn't grow. Always negotiate the option count + strike + vesting schedule + exercise window post-departure (90 days is standard but longer is fairer). At a startup, options are often the largest component of total comp.