4 ms·
Wonder if their RSU grants have a clause that converts them to cash in the event of a takeover. And having been in a company that was taken over, it's a mixtur
by philjohn 5y ago
Wonder if their RSU grants have a clause that converts them to cash in the event of a takeover.
And having been in a company that was taken over, it's a mixture of emotions - is my job safe, will this be the same culture I joined for etc. etc.
- bogomipz 5y ago>"Wonder if their RSU grants have a clause that converts them to cash in the event of a takeover" This is interesting question since RSUs are a big part of total comp but how are unvested RSUs dealt with when the stock is retired? Are those put on a future cash comp schedule? And if so at what conversion rate?
- philjohn 5y agoThe last place I worked had an explicit clause in the RSU agreement that essentially said "if we get bought the price per share for unvested stock will be given to you as cash".
- bogomipz 5y agoI'm curious was the complete cash out immediate or did it assume the same schedule as the vesting? I'm guessing if the cash out is immediate the company would then run the risk that those people might exit?
- philjohn 5y agoI believe it was immediate, but I don't have the grant document anymore to check.