VIDEO: Why plan for taxes on startup equity and startup stock options? From the Secret Keys of Startup Equity Series
If you're reading my blog and I'm talking about taxes for startup equity or startup stock options, I can understand that you might be thinking "blah, blah, blah, blah blah." Here's why it matters :)
Joining a startup? Here’s why startup hires plan for taxes on their startup stock options, restricted stock and RSUs. It’s not just “blah, blah, blah,” I promise.
If you're reading my blog and I'm talking about taxes for startup equity, I can understand that you might be thinking "blah, blah, blah, blah blah." Here's why it matters :)
Startup hires, even very sophisticated people, can miss out on the upside of joining a startup if they lose track the big picture themes of startup equity. This series - The Secret Keys of Startup Equity - is designed to outline the basic principles of startup equity to help you see the big picture and not get lost in all the fine print details of startup restricted stock, startup stock option and startup RSUs. You can consider this sort of the secret key to my blogs and my courses. If want to watch the whole series as one video, it’s here for your viewing pleasure.
Repurchase Rights are "Horrible" for Employees
Attorney Mary Russell counsels individuals on startup equity, including:
You are welcome to contact her at (650) 326-3412 or at info@stockoptioncounsel.com.
“As an aside, some companies now write in a repurchase right on vested shares at the current common price when an employee leaves. It’s fine if the company wants to offer to repurchase the shares, but it’s horrible for the company to be able to demand this.”
What can you do about it? Ask before you join:
“Can the company take back my vested shares?”
For more from Sam Altman, see his post, Employee Equity. For more on repurchase rights on vested shares, see Clawbacks for Startup Stock - Can I Keep What I think I Own? For more on questions to ask to make sure you have true startup equity, see our post, Startup Equity Standards - A Guide for Employees.
Attorney Mary Russell counsels individuals on startup equity, including:
You are welcome to contact her at (650) 326-3412 or at info@stockoptioncounsel.com.