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> Employees have been issued stock options and/or RSUs as part of their compensation package for years now which would make them shareholders. Well, no, option
by chimeracoder 3y ago
> Employees have been issued stock options and/or RSUs as part of their compensation package for years now which would make them shareholders.
Well, no, options don't make them shareholders unless they're exercised. RSUs don't make them shareholders at all, because they're not actually stock (they're stock units).
Reddit's cap table is probably a mess at this point, so I imagine that some current employees are also shareholders, but I don't know if all are, and RSUs don't make them shareholders.
- angoragoats 3y ago> RSUs don't make them shareholders at all, because they're not actually stock (they're stock units). What? As the grandparent implied, when RSUs vest, they turn into shares of stock, which makes the employee a shareholder.
- chimeracoder 3y ago> What? As the grandparent implied, when RSUs vest, they turn into shares of stock, which makes the employee a shareholder. Most RSUs for private companies (especially those issued by companies as old as Reddit) are double trigger, not single trigger. They don't turn into stock at vesting because that would be a taxable event. They turn into stock after the second trigger, which is a liquidity event (IPO or acquisition).
- angoragoats 3y agoWhile you're correct, you're being unnecessarily pedantic regarding the original point: it's very likely there are employees who are shareholders.
- chimeracoder 3y ago> it's very likely there are employees who are shareholders. Yes, I said that in my original post.