This is probably not uncommon, and I've always thought that it's a bit of a value theft from shareholders who don't have leverage via large ownership or active

This is probably not uncommon, and I've always thought that it's a bit of a value theft from shareholders who don't have leverage via large ownership or active employment. It's also a good reason to not exercise startup options unless you think the company will be a hit (medium and low value acquisitions tend to have relatively large payouts to employees staying on board).