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Ask HN: Can a company NOT pay out my stock options upon termination?

3 points by nbar1 ↗ HN
I was recently terminated and my company is saying that can't pay out my stock options until July (90+ days after termination). However, I can only exercise these options for 90 days after termination. How can I handle this situation?

7 comments

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slater
get a lawyer who knows about stuff like this, and have them read the stock options agreement you signed with the company.
nbar1
My separation agreement clearly states the company will buy back all stock options. My Stock option agreement says I have 90 days to exercise.

Also, I can't afford a lawyer, I'm unexpectedly unemployed.

elmerfud
If you can't afford a lawyer then your only choice may be to wait. You can always get a free consultation and see what they say. Anything your old work tells you get in writing. If it's, they'll pay out in July, get it in writing.

Even if you had a lawyer you're liking looking at beyond July to get anything back if they want to delay.

nbar1
Does emails count as "in writing" - I have emails from the CEO that I will be paid out in July (after being told I'd be paid out in April) but nothing is signed, etc.
sharemywin
Are they in the money? They could be worthless options. That's what happened to me. I had options but they valued them at worthless when I left.
nbar1
They are worth about 1-month salary, which is slightly under 10k.
smoyer
I did exactly what you're describing when leaving a privately-held company that was about to have the final 21% ownership acquired. You have to have enough cash-on-hand (and be willing to risk losing it) to purchase the options in your 90-day window. Once converted from options to stock, you have to hold it until the company can buy them back from you. The advice to consult a lawyer is relevant as I'm sure the contract language has several paragraphs related to this transaction.