3 ms·

This really makes me feel for the employees and extremely distrustful of stock-option focused payouts.

• dmarlow 8y ago
  We need more transparency as well as good willed founders willing to pledge and honor more equitable systems for themselves, investors and employees.
• caprese 8y ago
  I think Delaware can further help here. They've been very willing to expand their securities laws in favor of disclosures for employees compensated in securities of private companies. And VC backed companies still incorporate there (even though none of these companies ever really need the court of chancery), but it is nice that the legislature is expanding their own regulations. Right now employees are offered stock options at arbitrary fractions of a percent, and forced to put a smile on their face because of the "generous offer" "bigger than others" that you got. And not everyone gets options, and not every industry gives routinely gives you ANY exposure to the success of the company. SO SMILE AND DON'T COMPLAIN. But the employee has no transparency into: The liquidation preferences of existing shareholders The valuation of the company per round, if the company decided not to brag about it How that relates to the strike price of the option What the option pool even looks like, dilution necessary to support it if at all and of course, has to consider coming up with the actual money to purchase their exposure to the company, even without any of this transparency If you issue the right or interest in a security to employees, they should have transparency. Delaware can do that.