#equity

Marcus exercised 12,000 ISOs at $7 strike when FMV was $42. The 2022 IPO peaked, then crashed 80% by tax day. He owed $80K of AMT on a position now worth less than the strike. Here's the exercise math, the exit options, and what the calculator should have shown before he wired.

10-15% of new tech hires leave inside year 1 and forfeit their entire cliff. On a $240K grant that's $60K of equity value gone. Here's how the cliff actually works, what triggers the forfeit, and the negotiation move that softens the trap.