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Annual stock-option grants

What this is

If you get an annual stock-option grant for N years, what's the paper value at the end?

Each year's grant compounds for the remaining years until vested. Big assumption: stock price appreciates at the constant rate you choose. In practice, vesting cliffs, blackouts, and reorgs make actual outcomes much noisier.

Cumulative grants

$160,000

Paper value at end

$204,204

Paper gain

$44,204

Paper value ≠ realized value. You need a liquidity event (public co IPO, secondary sale, M&A) AND the price has to stay up.

Disclaimer

Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting.