2 million in company options?

[Anonymous]

I am at a vp level, about 2m value of unvested shared, acquired by a public company. What happened to the unvested shares if your company got acquired?

[Anonymous]

Usually they vest them. Look at the option plan and grant docs.

[Anonymous]

They also could just take them as is. They remain unvested. Depending on the deal structure, they might have to swap them.

[Anonymous]

Many option plans have "cliff" vesting in the event of a merger/acquisition. That means your options all vest at the time of the acquisition and you are usually paid out the difference between the exercise price and the acquisition price (a cashless exercise).

Hopefully, you have a copy of the option plan.

[Anonymous]

Look at the docs or speak with your CFO.

[Anonymous]

It really depends on the structure of the deal as well as how your options are set up. For some companies, they elements where all unvested options automatically vest so that if there is a take over, executives get a pay out.

[Anonymous]

When they were granted C level said they would try to get them automatically vested in this situation but it’s not in the contract. They have some motivation since similar position may be offered at the acquired company and it’s a position they would be vital to them. (sales of technology they purchased). If they did get transferred to the company’s stock, do they typically remain on the same vesting schedule (about 1.5 years to go)? Would they typically do a similar value?

[Anonymous]

it depends on the terms in your LTI plan. Typically most public companies have Change in Control rules in their LTI plan, where unvested shares automatically vest upon change in control. But each company has their own rules on what constitutes "change in control", whether or not the vesting is conditional on your job being eliminated due to "change in control" etc. your company should be advising you of the rules associated with your plan.

[Anonymous]

Your Incentive Options Plan should have this spelt out.

[Anonymous]

If you’re a VP why are you asking on DC Urban mom?

[Anonymous]

Anonymous wrote:If you’re a VP why are you asking on DC Urban mom?

DCUM has consistent reminders that VP jobs do not require intelligence.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you’re a VP why are you asking on DC Urban mom?

DCUM has consistent reminders that VP jobs do not require intelligence.

I think plenty of people ask questions on DCUM as a starting point when there is a moment of stress. And frankly, if people weren't willing to ask their questions and people willing to answer, what would be the point.