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Ask HN: Employees not receiving promised option grants

2 points by sumohacker 15y ago

If a company promises stock options to new employees but doesn't deliver the actual agreements nor any written notice of the specific quantities and prices, what should the employee do? Does this violate the law in California after many months of employees asking and not receiving agreements?

neilk 15y ago
Were you ever promised these grants in writing? If not, you probably have a very difficult case to make. The management of a company, and potential acquirers, have a zillion ways to screw employees out of the value of their options. If your management is trying to screw you now pre-money it's only going to get worse. I say leave at the earliest opportunity.
- sumohacker 15y ago
  Yes it is clearly written down that we have grants, but the specifics are not written (at least for most employees, it seems). The options are definitely in the money already.
  - neilk 15y ago
    Like what, "there will be option grants"? Seems dubious to me but I'm a layman. You can hope that a wild lawyer appears on HN but you should really get your own.
    - sumohacker 15y ago
      Yes. I have letters on company letterhead that say things like "We will get you your option grant paperwork soon. Sorry for the delay." unfortunately it has been a while since then..
      - amorphid 15y ago
        Did the founders promise you a certain amount of equity?
        sumohacker 15y ago
        Yes, verbally. More than once and many months part. I believe they will come through with an agreement of some kind, but I worry about receiving the specifics of what I (and others) got promised.
NonEUCitizen 15y ago
You're supposed to get something written in your offer letter. After that, there might be some delay, usually until the next board meeting, to get the real paperwork (which includes # of shares and strike price). But what you are describing is worrisome.
tomgallard 15y ago
Before going 'legal' (especially as you seem to have nothing specific in writing), why not talk to your manager, or the most appropriate person about it. Explain, why you're worried ("We agreed there would be options grants, and I know you're a man of your word, but it has been a little while now, and I wonder if you could explain why there has been a delay, and when we can expect to get them"). Odds are that it is nothing malicious, or dodgy, but if you're at a fast growing startup there are probably lots of other things on your CEO's plate, and these might have been put near the bottom of the queue. But it is worth talking it through (there are lots of reasons why it might be taking a while- lawyer on holiday, investors need to sign off etc). If your boss is evasive or refuses to discuss specifics, then you can start to worry! (I'm in the UK, and my options took a year and a half to get finally sorted and signed off, but I trusted my boss, so didn't feel I needed to worry about it!)

2 points by sumohacker 15y ago

neilk 15y ago

Were you ever promised these grants in writing? If not, you probably have a very difficult case to make. The management of a company, and potential acquirers, have a zillion ways to screw employees out of the value of their options. If your management is trying to screw you now pre-money it's only going to get worse. I say leave at the earliest opportunity.

sumohacker 15y ago
Yes it is clearly written down that we have grants, but the specifics are not written (at least for most employees, it seems). The options are definitely in the money already.
- neilk 15y ago
  Like what, "there will be option grants"? Seems dubious to me but I'm a layman. You can hope that a wild lawyer appears on HN but you should really get your own.
  - sumohacker 15y ago
    Yes. I have letters on company letterhead that say things like "We will get you your option grant paperwork soon. Sorry for the delay." unfortunately it has been a while since then..
    - amorphid 15y ago
      Did the founders promise you a certain amount of equity?
      - sumohacker 15y ago
        Yes, verbally. More than once and many months part. I believe they will come through with an agreement of some kind, but I worry about receiving the specifics of what I (and others) got promised.

NonEUCitizen 15y ago

You're supposed to get something written in your offer letter. After that, there might be some delay, usually until the next board meeting, to get the real paperwork (which includes # of shares and strike price). But what you are describing is worrisome.

tomgallard 15y ago

Before going 'legal' (especially as you seem to have nothing specific in writing), why not talk to your manager, or the most appropriate person about it. Explain, why you're worried ("We agreed there would be options grants, and I know you're a man of your word, but it has been a little while now, and I wonder if you could explain why there has been a delay, and when we can expect to get them"). Odds are that it is nothing malicious, or dodgy, but if you're at a fast growing startup there are probably lots of other things on your CEO's plate, and these might have been put near the bottom of the queue. But it is worth talking it through (there are lots of reasons why it might be taking a while- lawyer on holiday, investors need to sign off etc). If your boss is evasive or refuses to discuss specifics, then you can start to worry! (I'm in the UK, and my options took a year and a half to get finally sorted and signed off, but I trusted my boss, so didn't feel I needed to worry about it!)