Equity Compensation not paid to ex Employees
One of my past gigs got acquired.They provided equity compensation to current employees BUT did NOT compensate ex employees Can legal course be pursued ?Can anyone recommend lawyers
Is this common??
what do you mean? it seems like the new company gave current employees stock as part of their retention package
Why would you compensate ex employees?
He was vested
As in he owns stock? Wouldn't it just get converted into whatever new stock is issued as part of the acquisition?
Yes, ex employees did not get paid for vested stocks
Isn’t that unusual?
Yes
What are our options ?
Relatively standard to have explicit language around any liquidity event in your offer sheet. What does it say?
A likely scenario is that everyone's vested stock was worth nothing after creditors and preferred stockholders got paid. Anything received by the current employees was probably retention provided by the acquirer.
Anyone can recommend me a lawyer please ?
No