3 ms·

You 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

• dmritard96 12y ago
  Huh? 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 ago
  If 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 ago
    You 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.
    • zwily 12y ago
      I believe that most founders exercise early when the company is formed and do an 83b. It's the smart thing to do, anyway.
      • nemo44x 12y ago
        Yes that's an option if they planned well. But there still may be spread.
• drewvolpe 12y ago
  While 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.