Square’s Price Pop Good News for Employees
Square board member Ruth Simmons. Photo by Bloomberg.Square employees are breathing easier–for now–after the payment company’s IPO pop this morning.
Square’s IPO pricing at $9 a share Wednesday night put 37% of all options underwater, according to filings. But with the stock trading above $13 by late morning eastern time, about half of those underwater options were back in the money.
Options are held by employees and advisors, among others. More than half of CFO Sarah Friar’s 2.5 million options carry an exercise price of $10.06, for example. Then there’s board member Ruth Simmons, whose 38,000 options have an exercise price of $15.25.
One important share price threshold is $13.94. Square granted 14.5 million options at that exercise price in June. And of course, as none of the employees can sell for six months, the price next spring is what matters.