Legal Question in Employment Law in California

Vesting of Stock re: Job Elimination

My position was recently eliminated. I am now told that stock options awarded over the years, and that stock given as part of a bonus must be forfeited if not yet vested. Is this legal in the state of CA when the termination was not for cause? I live and work in CA, but the company headquarters is in IL.


Asked on 1/15/04, 12:31 pm

2 Answers from Attorneys
Thomas Pavone Pavone & Cohen

Re: Vesting of Stock re: Job Elimination

Stock options are granted subject to the terms of a stock option agreement. Check the agreement regarding vesting terms. Some agreements will provide special consideration for cases where the job is eliminated or employment is terminated through no fault of the employee. If you require assistance, feel free to call me.

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Answered on 1/20/04, 1:46 pm
Donald Holben Donald R. Holben & Associates, APC

Re: Vesting of Stock re: Job Elimination

Need much more info before I can answer your questions. Call to discuss if you wish.

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Answered on 1/20/04, 4:15 pm


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