Replies to This Discussion

Permalink Reply by Amit Lakhotia on October 5, 2012 at 5:48pm

Also a number of companies have a clause that in case there is a liquidation event (IPO/M&A etc) before your shares are completely vested, there would be accelerated vesting and all your shares would get vested before their normal vesting cycle.

• ▶ Reply

Permalink Reply by Ranjan Bhattacharyya on October 5, 2012 at 11:55am

Very valuable inputs !  This kind of information is not easily available.  Thanks Alok !

• ▶ Reply

Permalink Reply by Harsh Kedia on October 5, 2012 at 4:50pm

Hi Alok, suppose if i leave my company before it's merger with some big group, and I buy my piece of vested shares, in that case, can I sell it back (if they have a clause of non transfer) in future to them. how will I know about the evaluation. do I have to make the buy n sell both at the same time during the exit (benefiting with the differential between market & base value)

• ▶ Reply

Permalink Reply by Nishant Agrawal on October 5, 2012 at 10:27pm

It's good how you've covered both, an entrepreneur's and an accountant's perspective.

• ▶ Reply

Permalink Reply by Arjuman Amjad on December 16, 2012 at 1:45pm

Thank you so much... Extremely helpful!

• ▶ Reply

Permalink Reply by Ashwin Adhikari on January 1, 2013 at 10:24pm

XYZ management will recommend to the Board of Directors that you be
granted an option to purchase 30000 shares of Common Stock of XYZ Inc.
through our stock option plan. The price per share for each grant will be the fair
market value of the Common Stock as determined by the Board of Directors at the
date of the grant. The shares are subject to vesting over a four-year period at a
rate of 1/48 per month. However, no shares shall be vested for a period of 12
months from your start date.

1) The shares are subject to vesting over a four-year period at a rate of 1/48 per month: Does this mean i shall be allotted (30000/48) shares every month for 48 months???

2) no shares shall be vested for a period of 12 months from your start date: Does it mean i shall not be able to sell the shares for 12 months from the date of allotment???

• ▶ Reply

Permalink Reply by Nitin Pulyani on April 8, 2013 at 10:19pm

This is awesome... Can someone also shed some light on how ESOP pool is managed by the company? If say founders have divided 100% of the company among themselves, what do we need to do to expand the pool and what is the "exact" way to offer shares to employees? I need legal process.

• ▶ Reply

• ‹ Previous
• 1
• 2
• Next ›
• Page