Can pre-IPO companies take back the vested RSUs...
Can pre-IPO companies take back the vested RSUs if employee is caught being OE?
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so there's a chance the company can just bar you from buying if caught for OE, casue it's a 'breach of contract'
13 Replies
Thread automatically created by darling_84675 in #🤔｜questions
other-emerald•8mo ago
just like salary, no
vested RSUs are part of your compensation
which, you've already done the work for
you've already delivered value to the employer
it's not like you've done absolutely 0 hours and they can't prove that
any emails you had that said "thank you!"? you've delivered monetary value
anytime someone slacked you great work? you've delivered monetary value
unwilling-turquoise•8mo ago
What about ISOs (stock options)?
other-emerald•8mo ago
if you purchased ISOs or were vested ISOs, they're yours
companies cannot take them away
unwilling-turquoise•8mo ago
What about unpurchased, but vested?
because once you purchase them, they're no longer stock options, they're just stocks
other-emerald•8mo ago
you own them on vest, so it should fall under the same bucket
unwilling-turquoise•8mo ago
Ahh, got it
other-emerald•8mo ago
i've only been in companies where we paid pennies for those ISOs lol
but they're the "same" as vesting
well
hold on
when vested
is there an option to "buy" those vested ISOs?
if so -- there may be conditionals on those, like within employment or within 6 months of leave
unwilling-turquoise•8mo ago
Almost always, there's an option yes. But you probably don't want to exercise those options too early, or you'll have a huge tax liability, but no real payout because the stock isn't public/liquid
other-emerald•8mo ago
okay
Solution
other-emerald•8mo ago
so there's a chance the company can just bar you from buying if caught for OE, casue it's a 'breach of contract'
unwilling-turquoise•8mo ago
At a previous role, I was told by the company General Counsel they almost never take back stock options (although they could, according to the employment contract). They'd only take them back in cases where i.e you stole form the company, or did other criminal things.
I'm just not sure which category OE would fall in their eyes
other-emerald•8mo ago
it would be similar to "breach of contract"
but yeah itll differ from company to company