4 ms·
It is pretty remarkable if it prevents dilution. Are you sure there's no weasel-wording in your contract that allows arbitrary changes in the future, has funky
by ericbarrett 6y ago
It is pretty remarkable if it prevents dilution. Are you sure there's no weasel-wording in your contract that allows arbitrary changes in the future, has funky exercise restrictions, etc.? Their special tax structure makes me suspicious as well (if this is the US). Sadly I think VCs saw all the mini-millionaires being created at FAANGs in the last decade and have pressured many companies into watering down stock compensation, since it's "lost money."
- srtjstjsj 6y agoI don't think it prevents dilution. Hard to believe investors would agree to a scheme where new rounds pay a % fee directly to employees.
- roflc0ptic 6y agoIt doesn't. It's basically still monopoly money. According to the org, they've had 3 or 4 rounds of financing, and each time they've taken on new funding they've distributed new shares to offset the dilution. This isn't policy they've committed to, just something they've opted to do.
- roflc0ptic 6y agoYes, I was suspicious, too. They offset my suspicions by 1. paying me a generous salary, and 2. giving me time to talk to an accountant about it. The accountant had never heard of it, but looked into it and it was legit. The reason that it's unfamiliar is because it's so danged advantageous to the employees. There is some room for them to dilute the shares out of existence. Notably I don't have to exercise them, I already "own" them. The vesting schedule is really more of a forfeiture schedule. If I leave after a year, I forfeit 3/4s of them. Otherwise, they're mine into perpetuity, until liquidation.
- deleted 6y ago[deleted]