2 ms·
In my experience common stock (i.e. what your options buy you) has no "information rights", so the company does not have to disclose financials to you. Addition
by jdawe 11y ago
In my experience common stock (i.e. what your options buy you) has no "information rights", so the company does not have to disclose financials to you. Additionally, even if you were offered the chance to buy preferred shares (what investors buy in a Series A, B, etc.), which ordinarily do carry information rights, there is usually a provision that prevents stockholders with paltry participation in those rounds (e.g. buying a single share) from enjoying information rights.
It's an extremely risky situation to be an employee stockholder. You are at the mercy of the founders, board, and investors. Usually founders also hold common stock, so that is somewhat reassuring, since they're in the same boat as employees from that perspective. However--and not saying this happens often--there is nothing preventing founders from being given the option, say in an acquisition or financing round, to cash out while employees are stuck without liquidity.