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> We are curious if this type of distinction between current and former employees is typical for post-IPO RSU settlements. I'm watching this thread, but just a

> We are curious if this type of distinction between current and former employees is typical for post-IPO RSU settlements. I'm watching this thread, but just as a reminder that it benefits the company to be as vague and complicated as possible for ex-employees trying to exercise their equity rights. You and your equity are effectively dead weight to the company now and it's in their best interest to get you to forfeit as much as possible. The best time to cash in your equity is always when you are still an employee.

Ancalagon 2y ago
Yet another reason working for most startups is a scam
- belter 2y ago
  Working for a Silicon Valley startup feels like those scenes in a con movie: You're the wide eyed bettor at the pool table, convinced you have a shot...Until you realize you've been playing against world-class hustlers.
- phendrenad2 2y ago
  I don't think it was always that way. There were lots of overnight millionaires when tech unicorns were going IPO like gangbusters. But we haven't had a true unicorn in years, so right now, getting paid in equity is choosing to work for nothing.
danielmarkbruce 2y ago
This is cynical and more frequently wrong that right. In most cases, the company is trying to avoid securities regulation screw ups, tax screw ups, other regulatory or legal screw ups. Sometimes they are overly conservative and it seems annoying, but that's what they are doing. As an example, Stripe went out of their way to get former employees paid.
- greenspam 2y ago
  True that the company needs to follow regulations. But they could do "net exercise", or "sell to cover". Instead they choose "pay cash or forfeit" path.
  - danielmarkbruce 2y ago
    Even that has downsides - they are effectively guaranteeing a large sale right at the end of the lock-up. It's hard to know if investors pushed back on that or from where the pressure came. This stuff is more complex than it seems, companies are rarely just being d*cks.
    - kelnos 2y ago
      That's pretty normal, though, and they're offering sell-to-cover as an option to their current employees, so that sale at the end of lock-up is going to happen regardless. I'm not convinced these events represent a significant enough number of shares to move the price, though. And regardless, many current and former employees will use this opportunity to dump more shares than just to cover withholding. I wouldn't be surprised if the number of shares sold normally at that time will dwarf the number sold to cover tax withholding.
- hansonkd 2y ago
  > This is cynical and more frequently wrong that right If you are joining a startup as an employee and expecting your equity to worth something its important to be aware of the risks. And trying to sell as an ex-employee is a Risk. Maybe I'm a cynic but having worked in employee equity I have seen more times that companies essentially turn their back on ex-employees than i have seen them actively helping them on liquidity transactions like tender offers.
- rootsudo 2y ago
  100% disagree. Just because one company goes out of the way for PR good will does not many many other companies will. Many companies do not care about you once you are a departed employee. For example, see how easy it is to get your bi weekly paycheck copies. Most will not reply at all.

Ancalagon 2y ago

Yet another reason working for most startups is a scam

belter 2y ago
Working for a Silicon Valley startup feels like those scenes in a con movie: You're the wide eyed bettor at the pool table, convinced you have a shot...Until you realize you've been playing against world-class hustlers.
phendrenad2 2y ago
I don't think it was always that way. There were lots of overnight millionaires when tech unicorns were going IPO like gangbusters. But we haven't had a true unicorn in years, so right now, getting paid in equity is choosing to work for nothing.

danielmarkbruce 2y ago

This is cynical and more frequently wrong that right. In most cases, the company is trying to avoid securities regulation screw ups, tax screw ups, other regulatory or legal screw ups. Sometimes they are overly conservative and it seems annoying, but that's what they are doing. As an example, Stripe went out of their way to get former employees paid.

greenspam 2y ago
True that the company needs to follow regulations. But they could do "net exercise", or "sell to cover". Instead they choose "pay cash or forfeit" path.
- danielmarkbruce 2y ago
  Even that has downsides - they are effectively guaranteeing a large sale right at the end of the lock-up. It's hard to know if investors pushed back on that or from where the pressure came. This stuff is more complex than it seems, companies are rarely just being d*cks.
  - kelnos 2y ago
    That's pretty normal, though, and they're offering sell-to-cover as an option to their current employees, so that sale at the end of lock-up is going to happen regardless. I'm not convinced these events represent a significant enough number of shares to move the price, though. And regardless, many current and former employees will use this opportunity to dump more shares than just to cover withholding. I wouldn't be surprised if the number of shares sold normally at that time will dwarf the number sold to cover tax withholding.
hansonkd 2y ago
> This is cynical and more frequently wrong that right If you are joining a startup as an employee and expecting your equity to worth something its important to be aware of the risks. And trying to sell as an ex-employee is a Risk. Maybe I'm a cynic but having worked in employee equity I have seen more times that companies essentially turn their back on ex-employees than i have seen them actively helping them on liquidity transactions like tender offers.
rootsudo 2y ago
100% disagree. Just because one company goes out of the way for PR good will does not many many other companies will. Many companies do not care about you once you are a departed employee. For example, see how easy it is to get your bi weekly paycheck copies. Most will not reply at all.