I got an offer letter from WeWork, and it states that vesting is conditional both on time and liquidity. They explain that RSUs will vest only 10 days after IPO (if IPO is after cliff). They also say that if there is no IPO in the next 7 years, all RSUs will be voided. Is it common for pre-IPO companies or is it bs? They clarified that if I leave before IPO, my shares will still vest after IPO.
Lyft had the same. Not allowed to trade in secondary market.
Hey DM'ed you
This is referred to as a “Double-Trigger Vesting” meaning the liquid value is only triggered based on the condition of time AND IPO. Basically it prevents them from having to pay your RSU value in the slim chance they never IPO. So... Palantir :P I’ve got the same sort of wording in my contract with NQSOs vs RSUs
What will it happen if you still work in the company for 7 years and not IPO?
All RSUs voided. Will be poor
op may you share your offer?
Uber was the same
Interesting. How did you guys track how many RSUs were time vested? Also, if they were not fully vested, how can you trade them on secondary market?
Shareworks tracked all regardless of time condition. All secondary sales required approval.