4 ms·

But signing something without not understanding it is too naive. So, assume I already left the company and exercised a big bag of common options and so I have

But signing something without not understanding it is too naive. So, assume I already left the company and exercised a big bag of common options and so I have a decent amount of common shares. If they tell me to sign something that looks shady I just say: "No, it looks shady". What then, can they do?

stingraycharles 8y ago
Send to lawyer's office to pressure you. It doesn't take a lot of imagination to see that this can happen. People are generally naive, and there are just a few that will resist and fight.
- johannes1234321 8y ago
  Especially if you depend on the money the job pays now and you can't pay a legal battle while searching a new job.
  - xrd 8y ago
    This. Stated another way, you need to make a decision in the very small timeframe about the tiny chance of success in the far away future, versus guaranteed success (your next paycheck) in the very close future.
- village-idiot 8y ago
  Very few people also have their own lawyers, although pretty much everyone involved in a startup should have one.
  - retiredcoder 8y ago
    This is one of biggest recent learnings. If you go to start up, make sure to understand also the legislation around labor, private contracts and equity. You will be dealing with people personalities much closer than in a big co.
deleted 8y ago
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everdev 8y ago
Threaten to shut down the company. Then your shares are worth zero.
- deanmoriarty 8y ago
  I believe I am the kind of person who would just say "Go ahead, shut it down if that's the only alternative. If you would like me to sign a deal to restructure the company, then I'll happily do it, but the company needs to pay me a one time cash bonus that reflects the value of the shares that I am forfeiting". I am not naive enough to believe it would work, as they would probably find a way to screw me regardless, but my stance would be firm. After my experience with startups I have become completely intolerant to corporate greed and injustice, so these days I am purely in a business transaction with my employer and I know exactly what to expect and when to expect it (which is why I get paid in RSUs rather than stock options). I like to think I wouldn't fall prey to this sort of petty begging.
  - everdev 8y ago
    It's better than the alternative of giving in. Shutting down / reopening the company takes $$ and I still think you'd have a decent lawsuit against the new startup.
    - blackflame7000 8y ago
      But the new startup wouldn't yet or might not ever be worth anything and so you just gave up your steady paycheck for a chance to sue for a small percentage of possibly nothing.
  - icedchai 8y ago
    They usually don't need your signature anyway. They'd just say no and move on. The vote of the majority of the shareholders, or often, just the majority of the preferred shareholders, are enough.
- wreath 8y ago
  But then it makes wonder, why would anyone get themselves into startups anyway? Especially when you consider the relatively low compensation and high risk.

stingraycharles 8y ago

Send to lawyer's office to pressure you. It doesn't take a lot of imagination to see that this can happen. People are generally naive, and there are just a few that will resist and fight.

johannes1234321 8y ago
Especially if you depend on the money the job pays now and you can't pay a legal battle while searching a new job.
- xrd 8y ago
  This. Stated another way, you need to make a decision in the very small timeframe about the tiny chance of success in the far away future, versus guaranteed success (your next paycheck) in the very close future.
village-idiot 8y ago
Very few people also have their own lawyers, although pretty much everyone involved in a startup should have one.
- retiredcoder 8y ago
  This is one of biggest recent learnings. If you go to start up, make sure to understand also the legislation around labor, private contracts and equity. You will be dealing with people personalities much closer than in a big co.

deleted 8y ago

[deleted]

everdev 8y ago

Threaten to shut down the company. Then your shares are worth zero.

deanmoriarty 8y ago
I believe I am the kind of person who would just say "Go ahead, shut it down if that's the only alternative. If you would like me to sign a deal to restructure the company, then I'll happily do it, but the company needs to pay me a one time cash bonus that reflects the value of the shares that I am forfeiting". I am not naive enough to believe it would work, as they would probably find a way to screw me regardless, but my stance would be firm. After my experience with startups I have become completely intolerant to corporate greed and injustice, so these days I am purely in a business transaction with my employer and I know exactly what to expect and when to expect it (which is why I get paid in RSUs rather than stock options). I like to think I wouldn't fall prey to this sort of petty begging.
- everdev 8y ago
  It's better than the alternative of giving in. Shutting down / reopening the company takes $$ and I still think you'd have a decent lawsuit against the new startup.
  - blackflame7000 8y ago
    But the new startup wouldn't yet or might not ever be worth anything and so you just gave up your steady paycheck for a chance to sue for a small percentage of possibly nothing.
- icedchai 8y ago
  They usually don't need your signature anyway. They'd just say no and move on. The vote of the majority of the shareholders, or often, just the majority of the preferred shareholders, are enough.
wreath 8y ago
But then it makes wonder, why would anyone get themselves into startups anyway? Especially when you consider the relatively low compensation and high risk.