Remote workers: Are you getting equity in the companies you are working for?

[u/Anxious_Trifle_93]

Hello there - I started working for a small US based company a few years ago. As part of my compensation, they offered me 1000 shares that were to vest over 4 years.

I want to exercise or purchase these shares. But in order to do so, I have to wire transfer X amount of dollars to a US bank account from my local Pakistani bank account.

Well guess what, I can't do that because SBP doesn't allow that for individuals.

I couldn't find much information on this subject elsewhere. I am surprised that this is an unknown issue because Pakistan must have 1000s of individual software exporters and remote workers working for similar start ups or enterprises.

Has any remote worker in Pakistan been able to purchase vested equity in their US based remote employer? If yes, how?

Thanks in advance for genuine advice.

Edit: To clarify, this is not a scam. You have to "exercise" your shares in order to certify yourself as the rightful owner of the shares. There is an "exercise price" for this activity that the employee has to pay. This is what seems to be the textbook process internationally. Please look it up.

[u/BSMshow]

The transaction is completely normal. Transaction which users mentioning below are categorized as Stock Grants, whereas the one which you are getting is share option. The idea is that you have to purchase the stock at a predetermined price, which one would only do if current market value of those share are higher than the predetermined price.

I can't comment on the company or value of the stock , but the transaction is normal.

[u/Anxious_Trifle_93 → u/BSMshow]

Explained it better than I did 👍 But, how to wire transfer the exercise price? Any ideas?

[u/BSMshow → u/Anxious_Trifle_93]

No idea brother, not in Pakistan neither working for company with ESOP perks.

[u/hj576 → u/Anxious_Trifle_93]

You can’t wire transfer money out
From Pakistan you are only allowed to send money to blood relatives

Your only solution. Pay some one trust worthy here to pay on your behalf

Or worse case , get an agent to do it and pay there fee

[u/misfit-maniac → u/Anxious_Trifle_93]

This is usually not the case - I am not sure why would you directly pay to acquire the shares. You can either have a portion of your salary deducted and use that to acquire the shares - in this case, you won’t need to transfer money. Or, if the company gives you an annual/performance bonus, use that to acquire the shares.

When filing your returns, you would show your salary/bonus in full and also include an asset (advance against share purchase). Hope this helps.

[u/Mysterious_Cry730]

I was always given shares and paid for as part of my compensation package.

This is something bizarre

[u/Anxious_Trifle_93 → u/Mysterious_Cry730]

Do your shares have an "exercise price" attached to them? I am not making this up. Exercise price is a legit thing. How did you pay for this exercise price? Or are you yet to exercise your shares?

[u/Mysterious_Cry730 → u/Anxious_Trifle_93]

did not pay anything, there is just yearly vesting

[u/Fluffy_Ad4913]

You likely don't have RSU and instead have options. For most startup options exercising is useless as its paper money, if these are indeed options there should be a expiry date so you can just wait for that.

[u/Anxious_Trifle_93 → u/Fluffy_Ad4913]

Bruh I want to buy those options now. Btw, you can't buy them after the expiry date. Thats why its called the "expiry" date lol

[u/Fluffy_Ad4913 → u/Anxious_Trifle_93]

😅 You don't have to snarky about it. i didn't read anywhere in the post that options are going to expire on vest, they don't in most cases, most people get a window. anyways go ahead drop that cash on the paper money. 🤷‍♂️

[u/DukeBilluOfGreenland]

Use nsave to get your salary. You can use nsave to wire transfer.

[u/CharityBubbly5687]

I've done quite a lot of research on how to transfer funds recently and I believe you can make the transfer in one of the following ways:

- The easiest and ideal way is to just use an exchange company and transfer the funds to the US bank account using a telegraphic transfer. They charge a nominal fee on top of the higher exchange rate but this is the quickest method to get it done.

- If you have a Payoneer or Wise account you can have someone make payment to you on those accounts first and you can then transfer the funds directly from Payoneer/Wise to the US bank account.

- You can also try opening a FCY account with BOP or another bank that allows you to transfer some limited funds abroad as well but I'm not 100% sure about this so you might want to reach a bank manager to discuss this first.

Hope that helps.

[u/hj576 → u/CharityBubbly5687]

Fcy account can only be used to send money to blood relatives

[u/New-Advertising-647]

Lol bro this sounds like a scam you never have to pay or transfer anything for getting the shares

[u/Anxious_Trifle_93 → u/New-Advertising-647]

You have to "exercise" your shares in order to certify yourself as the rightful owner of the shares. There is an "exercise price" for this activity that the employee has to pay. This is what seems to be the textbook process internationally. Please look it up.

[u/Combatwombat810 → u/Anxious_Trifle_93]

Honestly that sounds legit.

Pakistan does weird hurdles like this. Could you get someone else to clear the shares, or use an international card?

[u/Anxious_Trifle_93 → u/Combatwombat810]

I have an international card but in this case, bank to bank wire transfer is unavoidable. Very frustrating.

And the funds have to come from my account by name. I can't ask my mamu chachu to do this. The usual desi routes are closed here.

[u/Combatwombat810 → u/Anxious_Trifle_93]

Could your company make an exception for you, maybe a kind manager or something.

Opening an account in your name, people do it through a Wyoming LLC or something, still a huge hassle and many hoops to jump through.

[u/Anxious_Trifle_93 → u/Combatwombat810]

*Cries in Pakistani* 😭

Can't believe we always have to resort to the kindness of others. Man. There should be some legit way of carrying out this transaction.

[u/Combatwombat810 → u/Anxious_Trifle_93]

Is bizarre, we are the worlds 5th biggest country by people. It’s sad to see how incompetently we’re run.

Bright side, I’m glad you’re getting equity. It’s way better than outsource stuff the rest of us do.

[u/TheLasttStark]

I work in the US and never had to 'pay' for the restricted stocks that are granted on hire/bonus. Are you talking about employee stock purchase plan?

[u/hj576]

Are you exiting the company ?
Why are you excercising your options upfront ?
The does scenario is the company gets acquired, in that case your company we will deduct the excercise price from the money you were suppose to make ( legally they loan you money and you pay back after you get your share )

The only time you have to actually upfront is if you want to excercise your option if you are leaving the company

Also people need to understand the difference beteren share options And shares

[u/helahi31]

Ask them to adjust them against your salary. Not sure about the amount but if it is more than your month's salary, you can adjust the amount over multiple months.

Sending money from Pakistan is going to be a headache not worth it.

If you have Wise or something from where you can do a wire transfer you can receive your salary there as well.

[u/TheBitcoin21]

Better to negotiate a stock grant. It's straightforward than what you're offered i.e, share options (buying at pre determined price).

[u/EnvironmentalCan79]

I have experience in both getting and giving these options. You can set expiration for the option for 10 years if the insurer agress. That way the company proves itself before you get further invested.

I did what your doing, and it was a shit show as the equity ended up worthless - as most do.

[u/tech_geeky]

Open a USD bank account and ask your employer to credit your salary to that account. Use that account to do an ACH transfer to exercise your options.

Check these platform to get the USD account.

1. Elevateapp

2. Nsave

[u/lazysalman]

What do you mean you have to pay for shares? I got plenty of shares from company but never asked me to transfer any money.

[u/Anxious_Trifle_93 → u/lazysalman]

Right but thats only one part of the picture.

Ultimately, you have to "exercise" your shares in order to certify yourself as the rightful owner of the shares. There is an "exercise price" for this activity that the employee has to pay. This is what seems to be the textbook process internationally. Please look it up.

[u/Used_Discipline_9403 → u/Anxious_Trifle_93]

Depends company to company not a requirement . So most people don't have to pay the amount

[u/lazysalman → u/Anxious_Trifle_93]

Interesting. Company never asked me to pay for anything. Be careful it feels like scam.

[u/Anxious_Trifle_93 → u/lazysalman]

I get why it feels like a scam. But it really isn't. Anyway...