3 ms·
There are variants I've heard regarding illiquid RSU treatment. 1) Regular RSU vesting schedule. You'd get a tax hit on illiquid equity (I've never heard this
by hkmurakami 10y ago
There are variants I've heard regarding illiquid RSU treatment.
1) Regular RSU vesting schedule. You'd get a tax hit on illiquid equity (I've never heard this happen at late stage startups so far).
2) RSU vesting is delayed until IPO. If you leave before IPO, you lose all your equity.
3) RSU vesting is delayed until IPO. If you leave before IPO, you get the equity you have vested on paper so far. You will owe ordinary income tax on the shares.
"more-or-less impossible to cash out your equity" seems to be somewhere in between (2) and (3). I'm interested to read the exact legal language used in the contract, if anyone can find said post.