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AFAIK most of the pressure is around RSU expiration, not options. So - no (Unless we're talking about Stripe changing this equity program even further)
by jcdavis 4y ago
AFAIK most of the pressure is around RSU expiration, not options. So - no (Unless we're talking about Stripe changing this equity program even further)
- choppaface 4y agoBut RSUs are shares and this don’t expire? ISOs and Non-quals expire after 10 years typically.
- chowchowchow 4y agoRSUs do expire if they do not have the qualifying events to convert to shares in time, with a window similar to option expiry. It sounds like Stripe is going to declare a qualifying event which will convert outstanding RSUs into shares which will bring along with it a major tax implication for the RSU holders, who would be in a really tough spot if they got a windfall of totally illiquid Stripe equity. So Stripe is going to buy shares to facilitate tax withholding, for which they need the $$ they are raising.
- choppaface 4y agoHuh, did Stripe move to RSU-based packages earlier than typical? So they would have had to move from options to RSUs in, like, year 4 of the company? Didn't Facebook not do RSUs until year 6?
- chowchowchow 4y agoI think that’s right. If the RSUs had a 7 year window and they are expiring this year it means they started granting them in 2016.