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Upon reviewing my share options amounting to ~2.5% of the company, I was surprised to learn that there is no vesting schedule. This means that if I leave, I lose all options.
I've never known a share option agreement to work like this. Is this ethical? Can I exercise early to work around this?
No, this is not ethical, nor common.
Legal? Dunno. And that is the question.
In the absence of a vesting schedule, I see little legal reason that the options did not vest immediately. The primary reason for a vesting schedule is to prevent immediate vesting of options from occurring.
Lack of a vesting schedule is, in my experience, pretty common among less sophisticated [for some definitions of "sophisticated"] founders. It sounds like this a case where it worked out as well without one since you stayed past a typical vesting period.
That said, exercising and liquidating the options is likely something that should be reviewed by an attorney irrespective of vesting schedules or an immanent intent to leave the company.
Good luck.
You need to talk to a lawyer about this pronto. No, this is not ethical, nor common. Legal? Dunno. And that is the question.
[IANAL] In the absence of a vesting schedule, I see little legal reason that the options did not vest immediately. The primary reason for a vesting schedule is to prevent immediate vesting of options from occurring. Lack of a vesting schedule is, in my experience, pretty common among less sophisticated [for some definitions of "sophisticated"] founders. It sounds like this a case where it worked out as well without o…
You shouldn't immediately assume unethical conduct or foul play, though. Vesting schedules are still somewhat specific to US startup culture.
Is this a private (Ltd) or public (PLC) limited company? If the former you most likely own those shares right away (but in any case you should definitely have a solicitor review your contracts).
You need to talk to a lawyer about this pronto. No, this is not ethical, nor common. Legal? Dunno. And that is the question.
Make sure to find a lawyer specializing in startups.It's probably best to get the most up to date equity documents the company has as well as the documents you originally signed.
[IANAL] In the absence of a vesting schedule, I see little legal reason that the options did not vest immediately. The primary reason for a vesting schedule is to prevent immediate vesting of options from occurring. Lack of a vesting schedule is, in my experience, pretty common among less sophisticated [for some definitions of "sophisticated"] founders. It sounds like this a case where it worked out as well without o…
Thank you for your advice. It seems it'll be worth seeking legal advice on this.
Earlier quoted context omitted.
Make sure to find a lawyer specializing in startups.It's probably best to get the most up to date equity documents the company has as well as the documents you originally signed.
How would I go about finding a lawyer with startup experience to help me as an individual? Should I expect to pay large amounts of cash for this?
Earlier quoted context omitted.
Make sure to find a lawyer specializing in startups.It's probably best to get the most up to date equity documents the company has as well as the documents you originally signed.
How would I go about finding a lawyer with startup experience to help me as an individual? Should I expect to pay large amounts of cash for this?
Keep in mind you benchmarked your share value at around 1 million pounds. Don't penny-pinch on this.
As to finding a good lawyer in London, here's a list: http://mybilliondollarapp.com/best-startup-law-firms-in-lond...
Orrick is a brand name around Silicon Valley, so I'd start there.