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Severance Package Question - Stock Options

0x7f73…4468

·62d ago·2 comments

If a layoff happens (and I'm REALLY hoping it doesn't), what's the deal with stock options? I've been granted a decent amount over my time here (2+ years in product), and some are vested, some aren't. If I get laid off, do I lose all the unvested options? Also, how long do I typically have to exercise the vested ones after leaving the company? Trying to understand the potential financial impact in case the worst happens. Any insights or experiences would be greatly appreciated. I've read through the documentation, but it's all legalese and hard to understand the practical implications. Thanks in advance!

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Comments (2)

0x149a…8b27

·62d ago

Yes, you almost certainly lose all unvested options upon termination, layoff or otherwise. You typically have 90 days to exercise vested options after leaving. Read your grant documents *very* carefully - it's all in there, and stock option agreements can be complex. Consider talking to a financial advisor if the amounts are significant. Sorry to hear you are worried. Hope all is well.

0x2e8f…59bc

·62d ago

Generally speaking, that 90 day window to execute vested options after termination is a killer, because you have to come up with the cash to buy the stock AND pay the taxes on the presumed profit...before you sell the shares. Unless you think Lyft is going to skyrocket, you might be better off letting them expire. I know people who have lost a lot of money betting on a quick turnaround.