For the last few years, I have been working in a small, privately held, software company. In a few weeks, I will be transitioning to one of the biggest software companies in the world. I am excited about the new opportunity from a professional standpoint. It will also be a very advantageous move financially. I will be making more money and there are many significant fringe benefits.
The company matches employee contributions to retirement accounts. I already contribute the maximum allowed to my retirement account, so I plan to enrol in the new plan and get the “free” money.
My new employer also has a stock purchase plan. I am fully cognizant of the perils of holding too much company stock in a portfolio. I will be contributing the maximum allowed to the plan but don’t plan on holding the stock. As soon as the stock is deposited in my account, I will sell it immediately. I will make small gains most of the time, small losses occasionally and big gains every once in a while.
I will also receive a liberal number of stock options on joining the new company. Options may or may not be worth something in the future. I do plan to sell vested, in-the-money options anytime they exceed 5% of my portfolio value.
When I was evaluating my new job offer, I found the PayScale website to be very useful. It provides a comparison of your compensation with current industry standards.
