The trick is, some company doesn't alllow employees to exercise options until the company goes public or are acquired. That means if the employee leaves before that happens, he will literally get 0 stock/options. Does this happen very often? I find this policy extemely hostile towards employees. Not letting you exercise your vested options, they will buy back your options at god knows how low a price. That means after working overtime everyday, if you leave the company, you only get several thousands of dollars.
Depends. if the company is actually in the process of acquiring or IPO, yes they can block the exercising. Otherwise, it seems fishy
Make sense. But companies are allowed to legally and arbitrarily decide the condition of when options can be exercised. So companies can legally not let you exercise options even when it is not in IPO process.
Wouldn't it destroy morale if this happened though? I'd hope the first victim would make some noise on the way out.
I haven’t heard if this. Do you have real world instances? Good to know if it’s true.
Yeah. It is mind blowing to me too. I assure you it happens in real world. And you don't need to look too hard for it.
^^ thanks!
Only shitty companies do that. Accept that equity is worthless and run away.
Wait exercising or selling? I don't think companies can hold you back from vesting and exercising options. Selling could be a challenge.
Company can legally not allow employees to exercise options, until some specific conditions are met, for example, going public or being acquired.
I am talking about exercising, not selling.