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Put together a separation package that works for everyone. Something like: * Last day of work is today, all building and system access is revoked. * Remain e
by tacostakohashi 4y ago
Put together a separation package that works for everyone.
Something like:
* Last day of work is today, all building and system access is revoked.
* Remain employed, on the payroll, full benefits, etc until after vesting (30, 60, etc days).
* Subject to signing an agreement around non-disparagement of the company, not poaching employees, etc, whatever else.
These kinds of things are typical for layoff situations. Trying terminate prior to vesting seems unnecessarily punitive, but you can still get them out of the building immediately.
- tkk23 4y agoWhy is there a need to remain employed for vesting? Can't OP offer the right to vest in the separation package and terminate immediately?
- benwerd 4y agoNo. Why does this one employee get to vest early and the others don't? It's a legal minefield and sets up the wrong precedent.
- joshxyz 4y agocan the employee be terminated but part of that termination package is the assurance of his vesting at the right time soon? in this case he's now a headache to keep around
- HWR_14 4y agoAs opposed to paying them more money and then vesting the stock? Paying them more is not a worse precedent? And I don't see any legal ramifications here, but not legal advice
- radicalbyte 4y agoThe win is with the exiting employees - it's much better to be benevolent in this situation. Sure it costs a little more but just see that as an investment in the rest of the company.
- HWR_14 4y agoI wasn't referring to letting the stock vest. I was referring to the concept of leaving them on the payroll until their stock vests. There's no reason not to vest the stock early and send them on their way. Unless the original poster wanted to give them severance.
- badcppdev 4y agoLegal fees for early vesting might be a significant cost.
- HWR_14 4y agoHow?
- radicalbyte 4y agoI know - I would personally just put them on gardening leave until their stocks vest. Sure that costs money but not a lot - it's probably worth it for the lack of drama.
- HWR_14 4y agoIt's < 10 people, so getting the message out isn't an issue. So I wouldn't worry about drama wrt people thinking he got screwed out of his stock. Can even hold a meeting about it.
- JamesianP 4y agoTypical for a large company maybe but a ten-person startup?
- cj 4y agoI've done this at a 10 person startup. If you have 10 employees, you probably have a decent law firm. Any decent law firm will have boilerplate separation agreements that can be easily modified to fit your special needs with minimal work.
- JamesianP 4y agoI was primarily thinking of the 60 days full pay and benefits for someone who had been there barely a year. That's like a week of the entire company's payroll. I think the stock concerns are making a mountain out of a molehill. They may not even want it. The other legal stuff probably wouldn't be worth the legal costs/headaches of enforcing anyway.