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> Everything is known upfront. No, the whole point of this uproar is that the standard terms are opaque around the tax consequences of the 90-day window. It is
by abalone 10y ago
> Everything is known upfront.
No, the whole point of this uproar is that the standard terms are opaque around the tax consequences of the 90-day window. It is not generally well-understood upfront by recruits that they may lose vested options on exit.
You don't need to change the tax code to fix it. You can simply extend the exercise window.
- beambot 10y agoThere are legal limitations on exercise windows for ISOs that complicate matters (trickiness involving NQO conversion) that must be accounted for even in your "simple" solution (ask your attorney). It's a shitty situation for companies that want to do right too. No one wants to innovate on corporate structure (time, cost, and headache) when you're already trying to solve major product market fit problems...
- abalone 10y agoY Combinator has made this the standard for their companies and even provides boilerplate documents.[1] So not much of a distraction from product-market fit, and considerably simpler than altering the tax code. [1] http://blog.triplebyte.com/extending-stock-option-exercise-window-guide http://blog.triplebyte.com/extending-stock-option-exercise-w...
- beambot 10y agoI haven't seen YC incorporation docs since 2013... But either way, these are Triplebyte's docs, not YC standard's (though I'm open to evidence that proves otherwise). But thanks for pointer... Was informative.
- abalone 10y agoAh, I was confused by this ambiguous statement from harj.[1] I thought he was speaking for YC but I guess at this point he had moved on to triplebyte. Anyway, point is they've made it easier to adopt these terms and many are. [1] https://news.ycombinator.com/item?id=11198991 https://news.ycombinator.com/item?id=11198991