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I bet similar claw-back clauses are waaay more common than many on this thread would imagine at private co's. I've always been under the impression that 'vested
by jobs_throwaway 2y ago
I bet similar claw-back clauses are waaay more common than many on this thread would imagine at private co's. I've always been under the impression that 'vested equity' doesn't mean ~anything until you actually see liquidity. The company can generally fuck you before that point if they choose to. Hope I'm being overly cynical with this take.
- NotSammyHagar 2y agoIt sure means a lot more after liquidity, but big successful companies like spacex do have a market selling pre-ipo options or shares or whatever.
- aledalgrande 2y agoThey don't need clawback. They can just dilute the f out of you. Which is what happens most of the time anyways
- solidasparagus 2y agoI have never seen it in quite a few equity agreements I've looked at. What is common is a very short post-termination exercise window that in practice acts as a clawback unless you are financially able and willing to pay the cost/taxes of exercising within (often) 90 days. And a bunch of not-well-informed employees who didn't understand the consequences of this clause when they originally signed