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Startup stock options [closed]
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I am having some issues with the cliff period of my stock. My initial agreement was that I would get shares after 1 year (with 1 year already vested) Now the company wants to put a clause in the new contract that grants me stock options that I should stay some more months (a year of employment has already passed months ago) to have a right to get them. What should I do?
equity
closed as off-topic by Jan Doggen, gnat, Jim G., IDrinkandIKnowThings, Garrison Neely Oct 28 '14 at 13:14
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions asking for advice on what to do are not practical answerable questions (e.g. "what job should I take?", or "what skills should I learn?"). Questions should get answers explaining why and how to make a decision, not advice on what to do. For more information, click here." – Jan Doggen, gnat, Jim G., IDrinkandIKnowThings, Garrison Neely
suggest improvements |Â
up vote
1
down vote
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I am having some issues with the cliff period of my stock. My initial agreement was that I would get shares after 1 year (with 1 year already vested) Now the company wants to put a clause in the new contract that grants me stock options that I should stay some more months (a year of employment has already passed months ago) to have a right to get them. What should I do?
equity
closed as off-topic by Jan Doggen, gnat, Jim G., IDrinkandIKnowThings, Garrison Neely Oct 28 '14 at 13:14
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions asking for advice on what to do are not practical answerable questions (e.g. "what job should I take?", or "what skills should I learn?"). Questions should get answers explaining why and how to make a decision, not advice on what to do. For more information, click here." – Jan Doggen, gnat, Jim G., IDrinkandIKnowThings, Garrison Neely
Has this company had their IPO yet?
– pacoverflow
Oct 27 '14 at 18:47
2
What country? Please add a country tag
– Jan Doggen
Oct 27 '14 at 18:49
You had a nebulous agreement in place - work 1 year for an unknown quantity of options. The unethical (but likely perfectly legal) the company could do is to grant you exactly 1 option now, then grant you some number of additional options for continued employment. Bear in mind, options should be seen as a potential bonus. In companies that have yet to IPO they might be worth the cost of the paper the agreement is printed on... I have enough of these in a box somewhere to cover a wall.
– NotMe
Oct 28 '14 at 14:42
suggest improvements |Â
up vote
1
down vote
favorite
up vote
1
down vote
favorite
I am having some issues with the cliff period of my stock. My initial agreement was that I would get shares after 1 year (with 1 year already vested) Now the company wants to put a clause in the new contract that grants me stock options that I should stay some more months (a year of employment has already passed months ago) to have a right to get them. What should I do?
equity
I am having some issues with the cliff period of my stock. My initial agreement was that I would get shares after 1 year (with 1 year already vested) Now the company wants to put a clause in the new contract that grants me stock options that I should stay some more months (a year of employment has already passed months ago) to have a right to get them. What should I do?
equity
edited Oct 27 '14 at 23:52
asked Oct 27 '14 at 17:44
anon
closed as off-topic by Jan Doggen, gnat, Jim G., IDrinkandIKnowThings, Garrison Neely Oct 28 '14 at 13:14
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions asking for advice on what to do are not practical answerable questions (e.g. "what job should I take?", or "what skills should I learn?"). Questions should get answers explaining why and how to make a decision, not advice on what to do. For more information, click here." – Jan Doggen, gnat, Jim G., IDrinkandIKnowThings, Garrison Neely
closed as off-topic by Jan Doggen, gnat, Jim G., IDrinkandIKnowThings, Garrison Neely Oct 28 '14 at 13:14
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions asking for advice on what to do are not practical answerable questions (e.g. "what job should I take?", or "what skills should I learn?"). Questions should get answers explaining why and how to make a decision, not advice on what to do. For more information, click here." – Jan Doggen, gnat, Jim G., IDrinkandIKnowThings, Garrison Neely
Has this company had their IPO yet?
– pacoverflow
Oct 27 '14 at 18:47
2
What country? Please add a country tag
– Jan Doggen
Oct 27 '14 at 18:49
You had a nebulous agreement in place - work 1 year for an unknown quantity of options. The unethical (but likely perfectly legal) the company could do is to grant you exactly 1 option now, then grant you some number of additional options for continued employment. Bear in mind, options should be seen as a potential bonus. In companies that have yet to IPO they might be worth the cost of the paper the agreement is printed on... I have enough of these in a box somewhere to cover a wall.
– NotMe
Oct 28 '14 at 14:42
suggest improvements |Â
Has this company had their IPO yet?
– pacoverflow
Oct 27 '14 at 18:47
2
What country? Please add a country tag
– Jan Doggen
Oct 27 '14 at 18:49
You had a nebulous agreement in place - work 1 year for an unknown quantity of options. The unethical (but likely perfectly legal) the company could do is to grant you exactly 1 option now, then grant you some number of additional options for continued employment. Bear in mind, options should be seen as a potential bonus. In companies that have yet to IPO they might be worth the cost of the paper the agreement is printed on... I have enough of these in a box somewhere to cover a wall.
– NotMe
Oct 28 '14 at 14:42
Has this company had their IPO yet?
– pacoverflow
Oct 27 '14 at 18:47
Has this company had their IPO yet?
– pacoverflow
Oct 27 '14 at 18:47
2
2
What country? Please add a country tag
– Jan Doggen
Oct 27 '14 at 18:49
What country? Please add a country tag
– Jan Doggen
Oct 27 '14 at 18:49
You had a nebulous agreement in place - work 1 year for an unknown quantity of options. The unethical (but likely perfectly legal) the company could do is to grant you exactly 1 option now, then grant you some number of additional options for continued employment. Bear in mind, options should be seen as a potential bonus. In companies that have yet to IPO they might be worth the cost of the paper the agreement is printed on... I have enough of these in a box somewhere to cover a wall.
– NotMe
Oct 28 '14 at 14:42
You had a nebulous agreement in place - work 1 year for an unknown quantity of options. The unethical (but likely perfectly legal) the company could do is to grant you exactly 1 option now, then grant you some number of additional options for continued employment. Bear in mind, options should be seen as a potential bonus. In companies that have yet to IPO they might be worth the cost of the paper the agreement is printed on... I have enough of these in a box somewhere to cover a wall.
– NotMe
Oct 28 '14 at 14:42
suggest improvements |Â
2 Answers
2
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oldest
votes
up vote
3
down vote
Well don't fret too much. Companies lose people ALL THE TIME! Does it suck? Absolutely! I HATE having to replace good people, not because I want to keep any person around forever, but more because it's REALLY hard to find good people these days.
You got your stock options months ago, okay you didn't quit right when it happened which would scream "cash out". You were disappointed in the offering that would reasonably qualify you as return on effort did not meet expectations.
It sounds like they want to change the terms of your contract to keep you around AND prevent you from getting what you already earned. (If I'm reading you right) To me this is red flag city, totally different situation if were talking stock options in addition to what you already have)
At this point I think it's fair to say you're not happy with the compensation for the work rendered.
I would do two things...
Reject changes to your contract
You earned your current stock options fulfilling the terms of your contract in full to acquire them. DO NOT give them up. They can offer you more, but once you've satisfied the contract they cannot change it after the fact.
Again if were talking "in addition" that's an entirely different situation, I would also caution from accepting it if you get more, but have to wait for what you've earned. That stinks of shadiness.
Put in your notice
Once you decide your leaving (which it sounds like you've decided) put in your notice (or better yet find another opportunity THEN put in your notice) don't wait because you just got paid, a raise, new benefits, etc.
This is not a situation you should feel at all guilty about, I'd explain you had expected more compensation in regards to stock options and serve your notice. Simple as that. You basically told them you had an arrangement, you weren't satisfied with it, so you're moving on.
So long as you remain professional then it shouldn't be a big issue. Will the founders be upset, that depends on them, but from my perspective if they get upset over this, then they would be upset no matter when or how you left.
edited Oct 27 '14 at 18:49
Joe Strazzere
223k106657924
answered Oct 27 '14 at 18:41
RualStorge
9,5372231
suggest improvements |Â
up vote
0
down vote
First are the shares actually worth something? Are you likely to make any money at all from them? Very few start-ups turn out be very valuable.
If they are likely to be valuable, then it is probably worth it to hire a lawyer. Get his advice about the changing nature of your contract.
If you think a lawyer would be too expensive, the shares are probably not worth the paper they are printed on and thus, I would not accept the changes to the contract and put in my notice effectively immediately. You do not need to deal with people who are trying to make you an indentured servant. Move on to a better job at a better pay rate.
answered Oct 27 '14 at 19:06
HLGEM
133k25226489
suggest improvements |Â
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
3
down vote
Well don't fret too much. Companies lose people ALL THE TIME! Does it suck? Absolutely! I HATE having to replace good people, not because I want to keep any person around forever, but more because it's REALLY hard to find good people these days.
You got your stock options months ago, okay you didn't quit right when it happened which would scream "cash out". You were disappointed in the offering that would reasonably qualify you as return on effort did not meet expectations.
It sounds like they want to change the terms of your contract to keep you around AND prevent you from getting what you already earned. (If I'm reading you right) To me this is red flag city, totally different situation if were talking stock options in addition to what you already have)
At this point I think it's fair to say you're not happy with the compensation for the work rendered.
I would do two things...
Reject changes to your contract
You earned your current stock options fulfilling the terms of your contract in full to acquire them. DO NOT give them up. They can offer you more, but once you've satisfied the contract they cannot change it after the fact.
Again if were talking "in addition" that's an entirely different situation, I would also caution from accepting it if you get more, but have to wait for what you've earned. That stinks of shadiness.
Put in your notice
Once you decide your leaving (which it sounds like you've decided) put in your notice (or better yet find another opportunity THEN put in your notice) don't wait because you just got paid, a raise, new benefits, etc.
This is not a situation you should feel at all guilty about, I'd explain you had expected more compensation in regards to stock options and serve your notice. Simple as that. You basically told them you had an arrangement, you weren't satisfied with it, so you're moving on.
So long as you remain professional then it shouldn't be a big issue. Will the founders be upset, that depends on them, but from my perspective if they get upset over this, then they would be upset no matter when or how you left.
edited Oct 27 '14 at 18:49
Joe Strazzere
223k106657924
answered Oct 27 '14 at 18:41
RualStorge
9,5372231
suggest improvements |Â
up vote
3
down vote
Well don't fret too much. Companies lose people ALL THE TIME! Does it suck? Absolutely! I HATE having to replace good people, not because I want to keep any person around forever, but more because it's REALLY hard to find good people these days.
You got your stock options months ago, okay you didn't quit right when it happened which would scream "cash out". You were disappointed in the offering that would reasonably qualify you as return on effort did not meet expectations.
It sounds like they want to change the terms of your contract to keep you around AND prevent you from getting what you already earned. (If I'm reading you right) To me this is red flag city, totally different situation if were talking stock options in addition to what you already have)
At this point I think it's fair to say you're not happy with the compensation for the work rendered.
I would do two things...
Reject changes to your contract
You earned your current stock options fulfilling the terms of your contract in full to acquire them. DO NOT give them up. They can offer you more, but once you've satisfied the contract they cannot change it after the fact.
Again if were talking "in addition" that's an entirely different situation, I would also caution from accepting it if you get more, but have to wait for what you've earned. That stinks of shadiness.
Put in your notice
Once you decide your leaving (which it sounds like you've decided) put in your notice (or better yet find another opportunity THEN put in your notice) don't wait because you just got paid, a raise, new benefits, etc.
This is not a situation you should feel at all guilty about, I'd explain you had expected more compensation in regards to stock options and serve your notice. Simple as that. You basically told them you had an arrangement, you weren't satisfied with it, so you're moving on.
So long as you remain professional then it shouldn't be a big issue. Will the founders be upset, that depends on them, but from my perspective if they get upset over this, then they would be upset no matter when or how you left.
edited Oct 27 '14 at 18:49
Joe Strazzere
223k106657924
answered Oct 27 '14 at 18:41
RualStorge
9,5372231
suggest improvements |Â
up vote
3
down vote
up vote
3
down vote
Well don't fret too much. Companies lose people ALL THE TIME! Does it suck? Absolutely! I HATE having to replace good people, not because I want to keep any person around forever, but more because it's REALLY hard to find good people these days.
You got your stock options months ago, okay you didn't quit right when it happened which would scream "cash out". You were disappointed in the offering that would reasonably qualify you as return on effort did not meet expectations.
It sounds like they want to change the terms of your contract to keep you around AND prevent you from getting what you already earned. (If I'm reading you right) To me this is red flag city, totally different situation if were talking stock options in addition to what you already have)
At this point I think it's fair to say you're not happy with the compensation for the work rendered.
I would do two things...
Reject changes to your contract
You earned your current stock options fulfilling the terms of your contract in full to acquire them. DO NOT give them up. They can offer you more, but once you've satisfied the contract they cannot change it after the fact.
Again if were talking "in addition" that's an entirely different situation, I would also caution from accepting it if you get more, but have to wait for what you've earned. That stinks of shadiness.
Put in your notice
Once you decide your leaving (which it sounds like you've decided) put in your notice (or better yet find another opportunity THEN put in your notice) don't wait because you just got paid, a raise, new benefits, etc.
This is not a situation you should feel at all guilty about, I'd explain you had expected more compensation in regards to stock options and serve your notice. Simple as that. You basically told them you had an arrangement, you weren't satisfied with it, so you're moving on.
So long as you remain professional then it shouldn't be a big issue. Will the founders be upset, that depends on them, but from my perspective if they get upset over this, then they would be upset no matter when or how you left.
edited Oct 27 '14 at 18:49
Joe Strazzere
223k106657924
answered Oct 27 '14 at 18:41
RualStorge
9,5372231
Well don't fret too much. Companies lose people ALL THE TIME! Does it suck? Absolutely! I HATE having to replace good people, not because I want to keep any person around forever, but more because it's REALLY hard to find good people these days.
You got your stock options months ago, okay you didn't quit right when it happened which would scream "cash out". You were disappointed in the offering that would reasonably qualify you as return on effort did not meet expectations.
It sounds like they want to change the terms of your contract to keep you around AND prevent you from getting what you already earned. (If I'm reading you right) To me this is red flag city, totally different situation if were talking stock options in addition to what you already have)
At this point I think it's fair to say you're not happy with the compensation for the work rendered.
I would do two things...
Reject changes to your contract
You earned your current stock options fulfilling the terms of your contract in full to acquire them. DO NOT give them up. They can offer you more, but once you've satisfied the contract they cannot change it after the fact.
Again if were talking "in addition" that's an entirely different situation, I would also caution from accepting it if you get more, but have to wait for what you've earned. That stinks of shadiness.
Put in your notice
Once you decide your leaving (which it sounds like you've decided) put in your notice (or better yet find another opportunity THEN put in your notice) don't wait because you just got paid, a raise, new benefits, etc.
This is not a situation you should feel at all guilty about, I'd explain you had expected more compensation in regards to stock options and serve your notice. Simple as that. You basically told them you had an arrangement, you weren't satisfied with it, so you're moving on.
So long as you remain professional then it shouldn't be a big issue. Will the founders be upset, that depends on them, but from my perspective if they get upset over this, then they would be upset no matter when or how you left.
edited Oct 27 '14 at 18:49
Joe Strazzere
223k106657924
answered Oct 27 '14 at 18:41
RualStorge
9,5372231
edited Oct 27 '14 at 18:49
Joe Strazzere
223k106657924
edited Oct 27 '14 at 18:49
Joe Strazzere
223k106657924
edited Oct 27 '14 at 18:49
Joe Strazzere
223k106657924
223k106657924
answered Oct 27 '14 at 18:41
RualStorge
9,5372231
answered Oct 27 '14 at 18:41
RualStorge
9,5372231
answered Oct 27 '14 at 18:41
RualStorge
9,5372231
9,5372231
suggest improvements |Â
suggest improvements |Â
up vote
0
down vote
First are the shares actually worth something? Are you likely to make any money at all from them? Very few start-ups turn out be very valuable.
If they are likely to be valuable, then it is probably worth it to hire a lawyer. Get his advice about the changing nature of your contract.
If you think a lawyer would be too expensive, the shares are probably not worth the paper they are printed on and thus, I would not accept the changes to the contract and put in my notice effectively immediately. You do not need to deal with people who are trying to make you an indentured servant. Move on to a better job at a better pay rate.
answered Oct 27 '14 at 19:06
HLGEM
133k25226489
suggest improvements |Â
up vote
0
down vote
First are the shares actually worth something? Are you likely to make any money at all from them? Very few start-ups turn out be very valuable.
If they are likely to be valuable, then it is probably worth it to hire a lawyer. Get his advice about the changing nature of your contract.
If you think a lawyer would be too expensive, the shares are probably not worth the paper they are printed on and thus, I would not accept the changes to the contract and put in my notice effectively immediately. You do not need to deal with people who are trying to make you an indentured servant. Move on to a better job at a better pay rate.
answered Oct 27 '14 at 19:06
HLGEM
133k25226489
suggest improvements |Â
up vote
0
down vote
up vote
0
down vote
First are the shares actually worth something? Are you likely to make any money at all from them? Very few start-ups turn out be very valuable.
If they are likely to be valuable, then it is probably worth it to hire a lawyer. Get his advice about the changing nature of your contract.
If you think a lawyer would be too expensive, the shares are probably not worth the paper they are printed on and thus, I would not accept the changes to the contract and put in my notice effectively immediately. You do not need to deal with people who are trying to make you an indentured servant. Move on to a better job at a better pay rate.
answered Oct 27 '14 at 19:06
HLGEM
133k25226489
First are the shares actually worth something? Are you likely to make any money at all from them? Very few start-ups turn out be very valuable.
If they are likely to be valuable, then it is probably worth it to hire a lawyer. Get his advice about the changing nature of your contract.
If you think a lawyer would be too expensive, the shares are probably not worth the paper they are printed on and thus, I would not accept the changes to the contract and put in my notice effectively immediately. You do not need to deal with people who are trying to make you an indentured servant. Move on to a better job at a better pay rate.
answered Oct 27 '14 at 19:06
HLGEM
133k25226489
answered Oct 27 '14 at 19:06
HLGEM
133k25226489
answered Oct 27 '14 at 19:06
HLGEM
133k25226489
answered Oct 27 '14 at 19:06
HLGEM
133k25226489
133k25226489
suggest improvements |Â
suggest improvements |Â
Has this company had their IPO yet?
– pacoverflow
Oct 27 '14 at 18:47
2
What country? Please add a country tag
– Jan Doggen
Oct 27 '14 at 18:49
You had a nebulous agreement in place - work 1 year for an unknown quantity of options. The unethical (but likely perfectly legal) the company could do is to grant you exactly 1 option now, then grant you some number of additional options for continued employment. Bear in mind, options should be seen as a potential bonus. In companies that have yet to IPO they might be worth the cost of the paper the agreement is printed on... I have enough of these in a box somewhere to cover a wall.
– NotMe
Oct 28 '14 at 14:42