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This is so true. What's concerning is that terms are usually confidential and not available to most employees (including the top technical contributors). Given
by boomzilla 11y ago
This is so true. What's concerning is that terms are usually confidential and not available to most employees (including the top technical contributors). Given the info on Square on Box, it seems we should expect the last round investors are guaranteed at least 20% return regardless of the exit valuation before everyone else gets a dip.
- icedchai 11y agoYeah. I've asked for the terms and never got them. What are the preferences / rights / caps / etc. of the preferred stock holders? You can never get this information. Common stock holders are last in line. This information should be available for all stock and option holders, including employees.
- ThrustVectoring 11y agoI'm willing to give the benefit of the doubt, so long as my position is a significantly smaller version of the founding team's. If there's a difference, I'm going to assume that my share is worth $0 until I can get cash-in-hand.
- akg_67 11y agoBy Law, if you already own the stock (not just the option), you can demand to see the financial information of the private company. A few years ago, there was a story about an ex-googler who demanded and received access to Google financial information while Google was still private.
- icedchai 11y agoUnfortunately I only have options at the moment. Perhaps I should exercise some of them just to get the financial info?
- toomuchtodo 11y agoExercise 1 share? Not a lawyer or accountant, but the tax liability for one share should be minimal.
- deleted 11y ago[deleted]
- prostoalex 11y agoIt's a very limited set of documents, like prepared quarterly and annual statements.
- akg_67 11y agoI agree the information typically provided by the private companies is limited. But they offer insight into health of the company. The person reviewing these statements need to know how to analyze and reconcile financial statements. Also, as shareholder, you can ask their finance person to explain/elaborate certain items in the statements. Shareholders' Equity section of Balance Sheet statement and Cash Flow from Financing Activities section of Cash Flow statement might also give additional insights. Company will be accounting for value of preferred shares, any dividend/interest paid on preferred on these statements. I am not sure how much an employee can push without jeopardizing the job. IME, most owners and executives of such entities are typically egomaniacs who don't like being questioned unless someone has bigger stick than them. My personal experience is very limited and only as external investor.
- JonFish85 11y agoAs an employee who left a company and purchased one share on the way out, I imagine I have nothing to lose? I wonder if I am entitled to this information.
- akg_67 11y agoYou never know unless you try. Just send them a request to provide you annual report and invite to annual meeting. All corporations are required to prepare an annual report for shareholders and hold an annual meeting.