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Very interesting. A couple of potential issues spring to mind, in my ignorance: Does this mean that if a founder leaves immediately after 12 months, he will ow

by hanoz 7y ago

Very interesting. A couple of potential issues spring to mind, in my ignorance: Does this mean that if a founder leaves immediately after 12 months, he will own 50% of the shares issued and it will be a further three years before he is back down to 25% (and his remaining co-founder up to 75%). Also, if all goes well, the shares received towards the end of the four years could be worth a considerable sum, resulting in a large tax bill each month as they are received.

andreshb 7y ago
If you leave after 12 months and one day, you keep a quarter of your initial stock grant. Assume the stock grant was 48,000 if you have after the day after you completed 12 months, you get to keep 12,000 shares not 24,000. In terms of taxes, you have to file an “83b election” with the IRS to prevent being liable for “paper wealth” that’s not really cash Technically you are granted all 48,000 shares at a nominal value like .00001 and the company has the automatic right to buy back the shares you do not vest at that same nominal value
- hanoz 7y ago
  > Assume the stock grant was 48,000 if you have after the day after you completed 12 months, you get to keep 12,000 shares not 24,000. I meant that if the other shareholder also only has 12,000 at that point, that's 50%. > In terms of taxes, you have to file an “83b election” with the IRS to prevent being liable for “paper wealth” that’s not really cash. > Technically you are granted all 48,000 shares at a nominal value like .00001 and the company has the automatic right to buy back the shares you do not vest at that same nominal value. I see, and I guess that explains the first issue too.