4 ms·

Even if you fire your early employees, don't they still retain the equity earned up to that point?

• sdoowpilihp 13y ago
  Not necessarily. There are a number of ways in which you can lose the rights to your shares, including clawbacks, or clauses in a contract that may stipulate changes to the status of your equity post termination of your employment. A number of equity contracts I have seen also have clauses that state that the board may change the terms of the equity grants at their sole discretion. In other words, until you see an exit with your equity, it's not really your equity.
• djt 13y ago
  i believe in this case ex-employees did not get to vest their stock
• dakrisht 13y ago
  Most employees of startup companies are given restricted stock with a typical 4-year / 1-year cliff vesting schedule. Aka - they have to be with the the company for 4 years to vest 100% of their shares (25% gets vested on the "cliff")
  • greghinch 13y ago
    Also with options, you generally still have to buy the vested portion when you leave, usually within something like 90 days. So you actually have to spend money to keep them, and hope the share price goes up