3 ms·
I don't live in the US so I don't feel very concerned but I still wonder. What happen if you loose your job before vesting? My understanding is that you loose y
by lelag 4y ago
I don't live in the US so I don't feel very concerned but I still wonder. What happen if you loose your job before vesting? My understanding is that you loose your promised shares in that case. If you are worried about this happening, wouldn't that make 83b election a risky bet ? You would not want to risk paying taxes on money you never saw the color of, would you ? Or is there mechanisms for getting those paid taxes back ?
- lostdog 4y agoTypically the 83b is only helpful when the strike price is low enough that exercising is "cheap." Once a company raises its series A, exercising crosses ~$50k, and the risk is too high for most people. Relatedly, you can spot a bad startup by them refusing to let you 83b early exercise. It's a pretty clear sign that either the founder or the investors don't have the sense to care about their employee compensation, and probably they're being pound-foolish about a bunch of other things too.