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That very much depends on how twitter structured their options and the details of the contract for purchase. I've seen setups where all unvested options vest im
by zaphar 5y ago
That very much depends on how twitter structured their options and the details of the contract for purchase. I've seen setups where all unvested options vest immediately with a purchase and I've seen setups where the options are gone just like that. There is a whole range of options in the middle that are possible as well.
- secondcoming 5y agoInteresting, what's the point in having a vesting period if they'll all exercise regardless?
- zaphar 5y agoIn the first scenario they only exercise if there is a sale which may or may not be on the horizon when the options plan is set up. It's a way of showing appreciation for employees since there is no guarantee after a sale that the reasons for the company having value will still be in place. If you want to keep people around after a sale it's usually a good idea to reevaluate your options strategy anyway and it's not a good look for options to just vanish after a sale. You want your people to be invested in a sale happening if that is your planned exit. This is a way to sweeten the pot for them.