Nowdays, its common for an organization to give stock benefits as a part of CTC. I would like to request, if someone can explain how does grant and vesting of the stocks work. (I can understand there would be separate policies for each company but it would be great if some can explain with most common followed practice and can also give suggestions on negotiation) ?

• Lets take an example, a stock of 12,000 $ was offered by an organization A.
• Stock can be vested 25%, 50%, 75%, 100% for upto four years.
• Lets follow below valuation of organization, to understand better on how it would work
  1. Current valuation: 20 $
  2. Valuation after 1st year after DOJ: 30 $
  3. Valuation after 2nd year after DOJ: 40 $
  4. valuation after 3rd year after DOJ: 35 $ (intentinally reduced)
  5. valuation after 4th year after DOJ: 45 $

A) So, when the organization offers stock, Is the number of stock unit calculated and granted to employee on the DOJ. i.e 12000/20=600 Unit.
Or
B) Will, stock units of 3000$ will be granted to employee after each anniversary on DOJ?

With case A, number of units will be remain same and an emloyee might get higher returns (depending on the valuation) while in second case number of stock units will change on each anniversary.