In a situation where all employees have some options and a 4 year vesting schedule; how have you handled unvested options upon a sale of the business? Currently the options program does not contain a change of control provision. Sr Managers have alot of shares while staff have nominal amounts. Assume that retaining staff is important.
What have you seen with regard to option vesting on sale of private company?
Answers
Most Options should make mention of triggers that occur if a company is acquired; I've seen many options mention full-vesting upon acquisition. However, often these terms are renegotiated by the acquiring company - they too would like to retain the talent they're purchasing.
Double check the options and stock plan to see if there is any mention of triggers. if not, I would seriously considering adding a clause about change-in-control and how it affects shares.
The last thing you'd want is for a company acquisition fall through due to poor option planning.
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