> It could have been a double trigger vesting arrangement, where the shares "semi-vest" over time, but then they don't fully vest until a liquidity event, at which point poof suddenly all of those ghost shares become REAL shares.
Exactly this.
> If that's the case, they likely baked in a process for employees to have those shares withheld, or auto-sold during the lockup period. It's all tied in with their HR system and other payroll processes to make that easy.
In the agreement, they said this is up to the company, and the company chose the "pay tax to me or forfeit" option.
> There are companies that will loan you money to cover vesting costs or these types of situations - they'll do it at shitty rates, but if the options are losing out on a windfall or losing an extra 10-20% on the windfall, it's worth considering.
Thanks for this advice. Agree that this seems like a viable approach. Appreciate it!
Exactly this.
> If that's the case, they likely baked in a process for employees to have those shares withheld, or auto-sold during the lockup period. It's all tied in with their HR system and other payroll processes to make that easy.
In the agreement, they said this is up to the company, and the company chose the "pay tax to me or forfeit" option.
> There are companies that will loan you money to cover vesting costs or these types of situations - they'll do it at shitty rates, but if the options are losing out on a windfall or losing an extra 10-20% on the windfall, it's worth considering.
Thanks for this advice. Agree that this seems like a viable approach. Appreciate it!