If this happens, employees will be able to sell their soon-to-expire RSUs in a secondary offering. https://www.pymnts.com/news/investment-tracker/2023/stripe-reportedly-looking-to-raise-4-billion-via-special-vehicle/ But what about former Stripe employees, will they be able to sell too or will they just watch their RSUs expire in 2024 as worthless paper? Asking for a friend
You don’t need to ask for a friend. Former employees received an email with information. Source: I am a former Stripe employee.
and? … enlighten us
I’m not going to share confidential information on blind, lol.
former are fucked. that’s the standard practice in cases like this
That’s not what happened in this case. I can’t say more.
sounds like partial liquidity then. better than completely screwing them for sure
at a high valuation of 100bn, 4bn don’t sound like enough to pay out very much per employee
The raise is only for tax liability.
nice sounds like stripe is trying to do right by folks
The founders fucked up. Didn't IPO when market was ripe with liquidity and now are begging around at 60% peak valuation. Still won't go IPO. For all the books they claim they read, the missed market cycles one!
They over hired too. Missed IPO window . One of the biggest L. I don’t get why they are Silicon Valley darlings.
I think they gonna fast become Silicon Valley doofus. How can someone at top be this off their game! Complete idiots. Btw, I have 22k+ units I thought would help us retire. In secondary market it's gonna be about 360k post tax. Back to grind.
It seems more like if you have 100 rsu of stripe. They will convert them to 63 shares and pay the rest to IRS. so they need money to pay the tax.
Looks like it's been settled and both current and former employees will have their RSUs converted to non-expiring common shares. "The funds raised will be used to provide liquidity to current and former employees and address employee withholding tax obligations related to equity awards, resulting in the retirement of Stripe shares that will offset the issuance of new shares to Series I investors. Stripe does not need this capital to run its business." https://stripe.com/newsroom/news/stripe-series-i-employee-liquidity My friend will be thrilled to hear the good news!
Why do RSUs have to expire ? Unless they are given options or they aren’t vested
My understanding is It was designed to be double trigger RSU to save tax.
It's a legal workaround for taxes. The law says: Single Trigger RSU that don't expire are to be treated as cash. And thus taxed accordingly. Someone came up with double trigger RSUs and argued that since their value in uncertain, they can't be taxed (yet). But to create this uncertainty, they need to expire. Hence we end up with RSUs that expire after 7 years so we don't have to pay taxes on them.