Uber guys - can you cash your stock options and RSU and leave Uber now? How many of you are millionaires ?
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Only employees with stock options (ISO, NQO, etc) were able to sell in the SoftBank tender. Uber converted to issuing new employees RSUs in early 2015, right around employee #2,200 was hired. Considering Uber currently has over 19,000 employees, and a few thousand former employees, most were not eligible to participate in the tender. Current employees with options were capped at selling up to 50% of their total granted options. Former employees and investors had no cap. The tender was oversubscribed almost 2:1, meaning more shares were offered than SoftBank and the other investors wanted to buy. Thus, every seller’s offer was reduced by 42%. In the case of former CEO Travis Kalanick, who elected to sell 50% of his shares in the tender, he was reduced to selling only 29% of his options. While TK emerges a billionaire (even after taxes) from this tender, there was a wide distribution of shares even amongst the first 2K employees. Early driver operations and customer service employees received less shares than engineers and product managers. So not everyone with options has $1M+ in stock. Uber eng+product was about 400 people by early 2015. Add in the first 100 employees that were given great options packages regardless of title and assume they all attempted to sell 50%of their stock (or more if they were former employees), it’s possible there are a few hundred new millionaires today as a result of the tender. However, it’s more likely there was a wide distribution of stock sales (some employees offering none and some selling all), so the total number of new millionaires is less. Then there’s strike prices and taxes to consider which for those who already exercised and held in CA would be about a 30% loss. For unexercised shares or NQOs, the loss is closer to 50% Long story short, yes a few people who sacrificed their health and sanity for the past 3 or more years at Uber have more money today. However, the real winners are the early investors who walked away with billions in gains.
Wow thanks that was very well explained!
What was the strike price roughly for those who exercised ? Somebody who had 50,000 stock options could have exercised $2 million easily?