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In section 4: The next day, you forward-exercise your four-year option package and quit. The company will simply buy back all of your restricted stock, and you
by caf 15y ago
In section 4:
The next day, you forward-exercise your four-year option package and quit. The company will simply buy back all of your restricted stock, and you’ll end up with nothing.
Isn't it likely that the company will actually leave you with your Restricted Stock until just before the vesting date, then buy it back (unless the company has completely tanked in the meantime, in which case they'll be happy to leave you with your worthless stock)?
- random42 15y agoI suppose the clause is to prevent the (hypothetical) case of an employee working 1 day and leaving with 4 years worth of potential stock options. A company can certainly do what you suggest (i think), but I dont think companies operate to personally screw ex-employees :)
- kelnos 15y agoMost early-exercise contracts have a time limit, on the order of 30 days or so. So if you quit, the company has a limited amount of time to buy the stock back, and if they don't, they lose the right.