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Do these guys somehow manage to lose their equity despite having vested all of it within the first 4+ years?
by BadassFractal 12y ago
Do these guys somehow manage to lose their equity despite having vested all of it within the first 4+ years?
- cowsandmilk 12y agoIn the case of Eduardo Saverin, definitely not. He has about $4 billion of Facebook stock.
- dopamean 12y agoWhich he had to sue for.
- adventured 12y agoSaverin probably should have about ~$15 billion worth of Facebook stock today (assuming he sold very little like Zuckerberg). I'm sure Saverin isn't losing a lot of sleep on the difference he got screwed out of, but it's a truly massive sum of money.
- baudehlo 12y agoYou still have to pay for vested stock if you quit before an exercise event. I'm not saying he didn't do that, but it's hard for a lot of people to come up with that cash.
- dmritard96 12y agoHuh? Maybe I am clueless (very possible) but I payed for my at the time of what is sometimes called 'post incorporation'...are you sure you aren't talking about options...
- shalmanese 12y agoIf he were a founder, then his options would have a nominal strike price and it wouldn't have been a financial hit for him to vest them.
- nemo44x 12y agoYou forget about taxes. By the time of exit the fair market value of the stock likely greatly exceeds option grant strikes to founders creating a massive tax liability in the form of capital gains. Likely in the hundreds of thousands if not millions of dollars range.
- drewvolpe 12y agoWhile that can be true for employees, founders' stock works differently than options granted to employees. When the company is started, founders write a check to the company for a very modest amount (~$100) and buy all of their equity up front. They can do this legally as, on day 1, the company doesn't have any real value. And because the founder has already bought her equity with the $100 check, she never has to pay anything else. If she leaves, what's vested is hers.