Fair market value vs. strike price
Our 2 year old startup had a 409a valuation to, amongst other things, set the strike price of our options. The board held back significant amounts of information, including the total value and fair market value. The strike price was set at 1.25 per share, after they had suggested numerous people would get a price of 1 per share. Come to find out, the fair market value is .90 per share, which puts the value of the company at less than what they originally told us and to me shows some shady behavior.
Is it typical for a strike price to be set so much above fair market value? Is it usual to not divulge that information to share holders and optionees?