what happens to your vested rsus if you get laid off before ipo? if i read correctly they expire worthless even if the company does ipo after you leave?
Vested Rsus are yours. Options vest and become yours if you exercise. If you don’t exercise, there may be a provision that the option expires n days after employment termination.
I agree with this, this is exactly what had happened to me.
How would the company claw back RSUs? Didn't you pay taxes on them when they vested?
Generally not for a pre-IPO company. The stocks are with $0 as far as the IRS is concerned. They are still yours though, they probably have an expiration date, but that’s unlikely to be a huge problem.
Lol no they aren’t (worth $0.) whether or not the IRS chooses to go after the taxable value, is another question entirely. RSUs don’t have an expiration date. They aren’t an option, they are real shares.
From what I remember, you're going to have to pay taxes if you exercise your options. Usually you have 90 days after termination to exercise the vested options.
Depends on you have RSU or options. Airbnb and any mature startups give RSU rather than options . Even if you leave company, RSU is yours. Airbnb doesn’t do options but For options, you have to exercise to become yours. That comes with the risk of losing your own money to buy options which could be worthless if company never IPO or goes under
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Some firms allow accelerated vesting. It’s negotiable imo. At the very least, if you are on an annual vesting schedule, ask for prorated vesting of RSUs.
Where is the leverage in negotiation when you’re laid off? It’s up to the company and each is different
Agreed. But most new age companies will do the right thing if you ask.