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Just to clarify on this subject: the 83(b) election applies to stock options where early exercise is involved. Not all companies permit early exercise.
by 7Figures2Commas 11y ago
Just to clarify on this subject: the 83(b) election applies to stock options where early exercise is involved. Not all companies permit early exercise.
- scurvy 11y agoI've heard from several sources that the company has no say in the matter. That it's basically rule by fear. That said, thrusting 83b paperwork upon a company that doesn't "allow" it isn't the best way to start your new job. Also, Peter Thiel always told his portfolio companies to allow 83b elections. It's smart for the employee and the employee. I guess it's a changing of the guard from the Founders Fund types to the YC mania today.
- 7Figures2Commas 11y agoI don't know who your sources are, but you can talk to an attorney about this. A company does not have to permit employees the early exercise of options that have not yet vested. Founders and key early hires, who may be receiving restricted stock (not options), are in a different camp because they're receiving stock, not options.
- scurvy 11y agoIndeed, the company isn't forced to allow it. They could simply not cash your check.