Unvested stock options when public

Investment Management Firm
oceandigit

Investment Management Firm

oceandigit
Mar 25, 2021 5 Comments

I joined a new company and comp included for example 4000 stock options with strike price of $1 with 1 year cliff vesting.

If the company goes public and none of my stock options has vested at that time, will I still be able to get my stock options and exercise them a year later when they vest?

Or will I be forced to convert to RSU at a bad exchange rate and lose out on gains?

Or if i get to keep stock options, will the strike price change when they have vested?

I have not received any stock option grant document stating the strike price.

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TOP 5 Comments
  • Google / Eng
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    Go to company page Google Eng

    πŸ‘β˜οΈ
    In theory, the contract could be structured so that almost anything could happen on IPO. Gotta read the documentation to know. But most likely they remain options with the same strike price
    Mar 25, 2021 4
    • Investment Management Firm
      oceandigit

      Investment Management Firm

      oceandigit
      OP
      Oh no this sounds like a bad thing? Think I’m gonna get the ipo price as the strike price since it’s not granted yet?

      I’m gonna talk to someone tomorrow. Living in bad conditions now, my only hope is to get more income from the stock options to finally dig myself out.
      Mar 25, 2021
    • It's not unusual. They aren't granted until the next board meeting usually.
      Mar 25, 2021