Legal Question in Business Law in California
Company Aquisitions
If your company sells to another, and you are an employee of the company getting bought, it was told to the employee that your stock options become completely vested. If this occurs on a weekend and you are starting on that next monday for a different company, do you still get the fully vest options, or do you have to be an employee on that monday to get the benefits.
2 Answers from Attorneys
Re: Company Aquisitions
This isn't "business" law, it's employment law - repost there and you'll more likely get an answer.
Re: Company Aquisitions
In my opinion, it is a matter of contract interpretation. Almost all employee stock options are granted pursuant to very carefully drawn-up written contracts that meticulously set forth the conditions for vesting. You would be very foolish to depend upon what anyone says ("it was told to the employee"), because this may or may not be accurate and complete information, and in any event is not binding on the company even if it is from the lips to the CEO. Then, you need to compare what the option plan says with the specifics of your starting with a new company - were you fired on Friday, did you give two weeks' notice that Saturday would be your last day, or what? There is no easy answer to what the option plan allows or requires, and there is no easy answer as to when your qualifying employment will be deemed to have ended, so consequently there is no way to answer your question without very, very careful legal analysis of how your departure dovetails with the vesting rules.
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