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Employee options have a 10 year limit, and given the age of the company some employees were going to lose their options if they don't exercise. But to exercise
by returningfory2 4y ago
Employee options have a 10 year limit, and given the age of the company some employees were going to lose their options if they don't exercise. But to exercise you need to pay, in cash, the strike price plus taxes. I believe this founding round is to cover this.
- nonethewiser 4y agoYeah but what is the motivation for Stripe to do this? Especially when many stakeholders don’t even work there anymore.
- tyre 4y agoBecause if Stripe let millions of dollars in compensation expire, no one would want to work there. Also it's the right thing to do.
- paganel 4y ago> Because if Stripe let millions of dollars in compensation expire I suppose they're still paying salaries, people will still want to work there. Maybe not the people who now only target the high comps provided by share options and related stuff, that's true.
- buck4roo 4y agoISOs may have a 10 year limit, but that's only for their ISO tax treatment status... they don't (necessarily) need to expire. They can convert to NSO by way of an extension. https://www.esofund.com/blog/nso-extension https://www.esofund.com/blog/nso-extension