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What can a (startup) employee do to prevent these sort of situations from occurring after a liquidity event? In particular, what sort of terms should be in you
by beambot 15y ago
What can a (startup) employee do to prevent these sort of situations from occurring after a liquidity event? In particular, what sort of terms should be in your hiring agreement -- eg. double trigger acceleration?
- meterplech 15y agoAs PG suggests: http://news.ycombinator.com/item?id=2672454.. http://news.ycombinator.com/item?id=2672454... the best thing you can do is work for a company where you trust the management team and the VC's that back them. An early stage investor would almost never do such a thing because it would completely damage their ability to get access to the best deals. Check thefunded.com for the VCs (and ask around as well) and do your best to work for good people who care about their employees and reputation.
- mrkurt 15y agoThis sounds like it was explicitly to get around the trigger clauses in the contract. They likely had acceleration for change of control, and fired people before the "event" that would have triggered that acceleration.
- shimon 15y agoDon't these contracts typically require termination with cause in order to interrupt vesting? Not that that's a perfect solution, but it should at least make these more blatant acts a bit easier to pursue in court.
- bediger 15y agoI bet that the "with cause" part would be pretty easy to find. Every company I've worked for that had official policies wrote them so vaguely and all encompassing that every single employee was in violation. Some of the "don't introduce 3rd party software to the network" policies, when read strictly, make every single developer who writes a small automation script a violator of the policy.
- Joakal 15y agoI'm curious too and would like a simpler explanation as a non-business person that's sort of familiar with shares.