Stripe RSU Policy on Quitting and Expiry
Sep 23, 2021
29 Comments
Hi Folks,
1. I am new the pre-ipo space, I just learnt that some of pre-ipo double triggered VESTED RSUs "vanish" if employees quit before IPO or liquidity event. Is it true for Stripe too? It would be ridiculous
2. I also learnt that the vested RSUs at Stripe "expire" after 7 years if there is no IPO / liquidity event. How do you folks at Stripe deal with this usecase given that its been more than 7 years since company started?
Can anyone inside / outside stripe shed some light on these policies ?
Thank You!
#engineering #software #swe #stripe #pre-ipo #rsu
TC : 210k
comments
Yeah that’s what I’m thinking too,
Heard from news that they’re starting to do the IPO
I really hope it IPOs before grants expire otherwise it’s going to be crazy disaster!
#2 startups don’t switch from options to RSUs until they’re fairly large and their 409a (which would be the strike price if you’re given options) becomes too high. Stripe probably started giving out RSUs less than 2 years ago, so it doesn’t matter that they’re already 7 years old.
Also, this is required to show “substantial risk of forfeiture” so you’re not taxed on these RSUs until the company goes public. In most cases when the shares approach expiration, they just issue new shares that vest quickly (like in a month) which resets the timer.
I don't like my investment relies on some one's morality with negative incentive system.
As I said, 7 year RSU is probably fine, so far no bad thing happened in big preipo companies so far. But I will ask for more than public company.
Tax is another issue. All your rsu will be taxed in the year if IPO, basically highest tax rate for your many years income.