5 ms·
Twitter is a private company now. There are no more stocks to vest, so the idea that this is to dodge vesting schedules doesn't make any sense whatsoever.
by blindriver 4y ago
Twitter is a private company now. There are no more stocks to vest, so the idea that this is to dodge vesting schedules doesn't make any sense whatsoever.
- kalabilla 4y agoPrivate companies have stocks. They are just on traded on exchange
- djbusby 4y agoI think you have a typo.
- blindriver 4y agoNot Twitter. They all got bought on Friday by Elon. There's no way they would have time to create the necessary legal structure by Tuesday to be able to allocate shares and even to give them to employees.
- 7e 4y ago
- cookingrobot 4y agoAccording to blind, vesting schedules are converted to cash grants on the same schedule. So essentially there is still vesting, and no acceleration for regular employees. Curious to hear if anyone knows otherwise. https://www.teamblind.com/post/Twitter-Accelerated-Vesting-LsxqeYuK https://www.teamblind.com/post/Twitter-Accelerated-Vesting-L...
- MrMan 4y agoanother reason I think taking twitter private immediately was a wide choice
- hamandcheese 4y agoYes, according to those I know at twitter this is the case.
- kweingar 4y agoUntil recently I worked at a private company with a stock vesting plan.
- blindriver 4y agoCompletely irrelevant. Twitter just got bought. There are no shares anymore and Twitter hasn't had time to go through the process to create and distribute them.
- kweingar 4y agoThat’s true. Maybe I misread your comment, but it sounded like you were saying that the reason there cannot be stock grants is because Twitter is private. The reason that there cannot be stock grants is because Elon happens to own all the shares, not because Twitter is private.
- HWR_14 4y agoThe employees are vesting the cashed out value (at $54.20/share) of whatever stock they were vesting as of when the deal closed. Although SpaceX apparently has vesting stock in a way that keeps the company private. Some of the text messages Elon sent that were published alluded to that.
- adastra22 4y agoThe company just buys back the shares. It’s essentially a cash bonus.
- HWR_14 4y agoFor SpaceX? I knew the company offered to buy back the shares at regular intervals. I am disappointed to learn they are mandatory.
- adastra22 4y agoI didn't mean to imply that. I think you can keep the shares. But there are limits to how many non-insider (e.g. former employees), non-accredited investors a company can have before it is required to go public. For this reason a lot of companies do try to make it mandatory and/or offer sweet deals to buy the shares back upon leaving the company.
- HWR_14 4y ago> there are limits to how many non-insider (e.g. former employees), non-accredited investors a company can have before it is required to go public. I thought that limit was some trivial number. I thought the much larger number (2,000 IIRC) was made up of investors who were either insiders or accredited investors.
- adastra22 4y ago500. Although I thought the JOBS act increased that number to 2500, but my google-fu is failing me. In any case, once you have that many shareholders on record, you HAVE to go public. This is what forced Google and Facebook to eventually go public. Companies often get around this by not doing everything possible to prevent an employee from becoming a shareholder on record. E.g. settling option contracts for cash.
- jxf 4y agoThis doesn't make sense. There are certainly options and stock to vest; every pre-IPO startup employee in the world knows about the four-year vesting schedule.
- blindriver 4y agoIt makes total sense. Twitter was just bought on Friday. All existing shares are now owned by Elon. There are no private shares of Twitter yet, and it won't be ready to distribute by Nov 1, which is Tuesday.