options (IF) let go right before options vest?

Kaseya
vipassana

Go to company page Kaseya

vipassana
Mar 30, 2020 5 Comments

With everything going on, I was wondering what options I have if I happen to be let go 2 months (example) before the first 25% of my options best.
I heard that happened to someone in Tesla and he sued. What are my options?

Also, when other big companies and FAANG offer stock or equity as part of compensation. Is that stock? or is it like me, I got options with a strike price I have to buy at.

#layoff #equity #stock #compensation

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TOP 5 Comments
  • Big companies will give you RSUs which are supplemental to your salary, it is free stock and you don’t have to pay for it.
    Mar 30, 2020 0
  • If you leave or get fired before your cliff ends you will lose your options. If it happens after your cliff ends you will have a period to exercise (commonly 90 days which sucks... companies are starting to extend that exercise window to 7-10 years instead)

    FAANG and other public companies and late stage private companies will give RSUs without a strike price and no exercise. The same vesting schedule and cliff will apply (standard 4 year vesting with 1 year cliff - beside Amazon which is backloaded) though you wouldn't have to make a decision to exercise anything after your cliff.
    But if employees are let go or leave before their cliff ends, they will not have vested any RSUs and will leave with nothing.

    The cliff is there to protect the company in case they made a bad hire but it shouldn't be 1 year anymore IMO, but that's another story.

    I'm sure you could try to sue if it's obvious that they fire you right before your cliff though but not sure πŸ€·πŸ»β€β™‚οΈ
    Mar 30, 2020 2