Jennifer has just been granted at-the-money company options on 300,000 shares.These options expire in 5 years and are exercisable after 3 years.The options are valued at $1.2 million.It is normal for her to receive annual option grants such as this.She also receives a current salary of $550,000.Why might Jennifer prefer to receive a straight annual salary of $1.5 million rather than this salary and option combination?
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