3 ms·
What protects an equity-holder employee from being viciously or prematurely fired prior to the exit or cash out event?
by jjoe 13y ago
What protects an equity-holder employee from being viciously or prematurely fired prior to the exit or cash out event?
- jusben1369 13y agoWell once you get past your cliff you're vesting so they're yours if you want to exercise them.
- potatolicious 13y agoNothing. See: Mark Pincus & Zynga.
- gphil 13y agoThere are clauses in some agreements to prevent this from happening. Presumably, Zynga employees just didn't get these kind of rights.
- atomical 13y agoUnjust enrichment.
- troels 13y agoThat depends on the contract. Be sure to read the fine print.
- danielweber 13y agoIf you don't have a seat in the board room, assume you have a giant target on your back. As soon as the company has a reason, you can be diluted to nothing. You can get a lawyer, but the proceeds are so uncertain, especially if you successfully sue. What do you get, 1% more of a company that has just lost an expensive lawsuit? (Request: court records for a normal middle-class equity-owner in a small company fighting his rapid dilution, successfully or not.)
- argonaut 13y agoWhat prevents a company from not paying you the salary you're owed for the month? What prevents a company from firing you because you're a woman, or because you're black? The answer to your question, and these questions is the same: lawyers and lawsuits. In California, firing without cause in order to deprive an employee of a cash out event is legally actionable. How easy it is to prove is a different matter that I am completely unfamiliar with (it could be very easy or very hard).