4 ms·

>That kind of five-year tenure at a startup in Silicon Valley alone is pretty long, to be sure Does this journalist not even know about 4 year vesting schedule

>That kind of five-year tenure at a startup in Silicon Valley alone is pretty long, to be sure Does this journalist not even know about 4 year vesting schedule that are common after an acquisition?

GuiA 9y ago
It's common, but many people do not stick it for the whole 4 years. In fact, I have seen 12-24 months more often than the full 4. If your acquisition was even a tiny bit high profile, any new job offer will come with a stock grant that more than makes up for what you lose by leaving early. (And in fact, if you are in that position, you should be using it as a leverage when negotiating a new job offer)
- sulam 9y ago
  It really depends on what you think the EV is. Dropbox has pretty high EV if you're in his role, I bet, which is why people are speculating in the first place. (Does this mean Dropbox is not as valuable as it seems from the outside?) Personally, knowing how hard people there have worked over the last 6 years, I imagine he just needs a break.
  - GuiA 9y ago
    Yes, obviously $100k of Dropbox stock is worth much more than $300k of $randomStartupStock. Although at a VP/C level status, I'm not sure how much of a difference an extra few months (or even a year or two) of vesting makes.
  - ChuckMcM 9y ago
    If you have a sizable chunk of equity and the liquidity to exercise options (or if they are already exercised) then leaving the company can make it easier to trade on that equity.
    - user5994461 9y ago
      Leaving is also a way to get your money if the stock is not liquid, by negotiating with the new company to compensate for your lost options.
    - hkmurakami 9y ago
      I take it you're referring specifically to (1) lock up periods and (2) the negative signals you send when a CXO liquidates shares while still being a CXO?
      - ChuckMcM 9y ago
        In other tumultuous times, the dot com days, there were many examples of people simplifying all the rules about when to trade or what they could trade, by ending their employment. I did not take that route but many did. I was remarking that when the future has many variables and you want to simplify, that can be sufficient motivation to leave a company.
    - sulam 9y ago
      He joined Dropbox after it became common to have ROFRs and other terms that made secondary sales less possible. I don't know the terms he has, but I'd be surprised if Dropbox stock is being moved the way, say, Twitter or Facebook stock was back in the day.
stingrae 9y ago
There is more to it than just the 4 year vesting schedule. Such as how long the startup gives people to execute options and the amount of taxes owed if you have to execute within 3 months.
jarjoura 9y ago
No, I actually believe at that level, job changes are extremely rare unless they are retiring or find an offer they cannot refuse (a big step up, like CTO of Google, etc.).

>That kind of five-year tenure at a startup in Silicon Valley alone is pretty long, to be sure Does this journalist not even know about 4 year vesting schedule that are common after an acquisition?

GuiA 9y ago

It's common, but many people do not stick it for the whole 4 years. In fact, I have seen 12-24 months more often than the full 4. If your acquisition was even a tiny bit high profile, any new job offer will come with a stock grant that more than makes up for what you lose by leaving early. (And in fact, if you are in that position, you should be using it as a leverage when negotiating a new job offer)

sulam 9y ago
It really depends on what you think the EV is. Dropbox has pretty high EV if you're in his role, I bet, which is why people are speculating in the first place. (Does this mean Dropbox is not as valuable as it seems from the outside?) Personally, knowing how hard people there have worked over the last 6 years, I imagine he just needs a break.
- GuiA 9y ago
  Yes, obviously $100k of Dropbox stock is worth much more than $300k of $randomStartupStock. Although at a VP/C level status, I'm not sure how much of a difference an extra few months (or even a year or two) of vesting makes.
- ChuckMcM 9y ago
  If you have a sizable chunk of equity and the liquidity to exercise options (or if they are already exercised) then leaving the company can make it easier to trade on that equity.
  - user5994461 9y ago
    Leaving is also a way to get your money if the stock is not liquid, by negotiating with the new company to compensate for your lost options.
  - hkmurakami 9y ago
    I take it you're referring specifically to (1) lock up periods and (2) the negative signals you send when a CXO liquidates shares while still being a CXO?
    - ChuckMcM 9y ago
      In other tumultuous times, the dot com days, there were many examples of people simplifying all the rules about when to trade or what they could trade, by ending their employment. I did not take that route but many did. I was remarking that when the future has many variables and you want to simplify, that can be sufficient motivation to leave a company.
  - sulam 9y ago
    He joined Dropbox after it became common to have ROFRs and other terms that made secondary sales less possible. I don't know the terms he has, but I'd be surprised if Dropbox stock is being moved the way, say, Twitter or Facebook stock was back in the day.

stingrae 9y ago

There is more to it than just the 4 year vesting schedule. Such as how long the startup gives people to execute options and the amount of taxes owed if you have to execute within 3 months.

jarjoura 9y ago

No, I actually believe at that level, job changes are extremely rare unless they are retiring or find an offer they cannot refuse (a big step up, like CTO of Google, etc.).