4 ms·

His last clause is interesting: > Last, because two thirds of employees know squat about acquisition-based vesting acceleration triggers, they often sign offer

His last clause is interesting: > Last, because two thirds of employees know squat about acquisition-based vesting acceleration triggers, they often sign offer letters that give them no protection against being demoted or fired before or after (but in connection with) an acquisition. How would one negotiate something like that into their contract?

hga 13y ago
Decline the stock offering. Don't give them an incentive to get rid of you during these transitions. Note that you can't judge the probability of the latter, since no matter how good the will of the current players, a new investor might turn out to be a devil (been there, done that, resigned en masse with 12 others, almost all, and of technical staff all but one new hire; had to use the government just to get back pay). It's all a risk/reward calculation, and with the closing of the IPO exit for all but the most exceptional, stuck by lightening companies, it's pretty clear the possibility of a big reward is very low. But balance with your estimate of the probability of a big success, and how well you can make such an estimate. I can see this presenting "you aren't a team player" problems, though. Certainly signals you don't believe the company will be a big success.
- mindvirus 13y ago
  I don't understand what you're saying. Decline which stock offering? Don't work for equity at all, you mean?
  - hga 13y ago
    Exactly, except it's "don't work for non-vested, they can take it away from you" equity (which is not to be confused with equity where they have the right of first refusal to buy it back if you separate). When they ask you to sign up for deferred stock options, which requires paperwork you need to sign, don't. Or if it's a sufficiently confused small startup, never return the paperwork and let it slip through the cracks ... although when it comes time for the investment/sales event, they've got to know you have no options.... Hmmm, for excuses maybe mention some of the screw cases where people got options vested---exercised them? I forget the details---but the stock then tanked, and they had a big tax bill. I.e. throw FUD on the mechanism, the IRS, etc., but not the company. Or say you're a proletarian ^_^?

hga 13y ago

Decline the stock offering. Don't give them an incentive to get rid of you during these transitions. Note that you can't judge the probability of the latter, since no matter how good the will of the current players, a new investor might turn out to be a devil (been there, done that, resigned en masse with 12 others, almost all, and of technical staff all but one new hire; had to use the government just to get back pay). It's all a risk/reward calculation, and with the closing of the IPO exit for all but the most exceptional, stuck by lightening companies, it's pretty clear the possibility of a big reward is very low. But balance with your estimate of the probability of a big success, and how well you can make such an estimate. I can see this presenting "you aren't a team player" problems, though. Certainly signals you don't believe the company will be a big success.

mindvirus 13y ago
I don't understand what you're saying. Decline which stock offering? Don't work for equity at all, you mean?
- hga 13y ago
  Exactly, except it's "don't work for non-vested, they can take it away from you" equity (which is not to be confused with equity where they have the right of first refusal to buy it back if you separate). When they ask you to sign up for deferred stock options, which requires paperwork you need to sign, don't. Or if it's a sufficiently confused small startup, never return the paperwork and let it slip through the cracks ... although when it comes time for the investment/sales event, they've got to know you have no options.... Hmmm, for excuses maybe mention some of the screw cases where people got options vested---exercised them? I forget the details---but the stock then tanked, and they had a big tax bill. I.e. throw FUD on the mechanism, the IRS, etc., but not the company. Or say you're a proletarian ^_^?