4 ms·

But if Uber isn't yet public, and won't allow a market in its shares, who would one sell the shares TO to cover the tax?

• DannyBee 11y ago
  RSU's are only restricted until vest. Once they vest, they are unrestricted stock. Uber cannot control what you do with that stock (or at least, i'm not familiar with any company that has done so, and not sure that it's legal to do so)
  • URSpider94 11y ago
    As long as they are private, they can put lots of restrictions on what can be done with shares. That's the point of the whole article. Ultimately, people are allowed to exercise their ISO's and turn them into shares, they just can't do anything with those shares -- Uber won't buy them, and won't allow you to sell them to anyone else! I think the sibling post answered the question -- RSU's don't vest until the company goes public. So, instead of getting illiquid comp, you just get none until Uber is public.
    • DannyBee 11y ago
      ISO != RSU. They are different forms of restricted property, and when it comes to restricted stock, as i said, it's only restricted until vest. They can control when it vests, but even if they are private, they can't control what you do with restricted stock once it is vested, because it is then unrestricted stock, whether uber is private or not.
  • limeyx 11y ago
    They actually can if they determine that you possess non-public information which could allow you to gain from the stock in a manner that can be considered "insider trading" Typically this is only for short periods for higher-up people but it can affect "normal" engineers too (say you do a tech due diligence for an acquisition etc....)
• throwaway12358 11y ago
  Uber's RSUs have both a time condition and a "Uber goes public/Uber gets acquired" condition before they can vest.