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sadandbougie

Account Executive

Contributor
Fire Starter
Member

Acquisition + all stock shares sold / lost

Hi friends,


My company was recently acquired in an all equity sale invalidating 4 years of stock shares (cost 0) with an 8 week sevvy. Very disappointed - has anyone experienced this and leveraged legal action to assist with this process?

💰 Compensation
📠 Startup
☂️ Layoffs
15

22 comments

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poweredbycaffeine
WR Lieutenant
5
☕️
It’s likely written into your stock grant that a liquidity event can result in forfeiture or heavy dilution of earned positions. What did your agreement tell you?
CadenceCombat
Tycoon
3
Account Executive
Damn, that’s a bummer
braintank
Politicker
3
Enterprise Account Executive
That sucks. Your management fucked you.
detectivegibbles
Politicker
3
Sales Director
Terrible. Unfortunately I’d assume theirs language written in your contract about mergers/acquisitions related to shares.

Likely nothing you can do. Sorry my dude.
sadandbougie
Contributor
3
Account Executive
The language actually says if the company gets acquired we get all 4 years of the cliff which is why I think I could have a small case
detectivegibbles
Politicker
2
Sales Director
Lawyer up and get your bread
braintank
Politicker
2
Enterprise Account Executive
Have you (or anyone) asked leadership WTF is going on?
Sunbunny31
Politicker
2
Sr Sales Executive 🐰
It's in the contract - they should honor it.
Good for you for having that verbiage in there.
JDialz
Politicker
1
Chief Operating Officer
I’m surprised that is in there, but that’s good. Keep in mind though… you would be suing the much larger company who acquired your employer, not who hired you. You’ll also probably have to name all the officers of the new owner individually, so expect about a three year legal fight.
Diablo
Politicker
2
Sr. AE
I have experienced it where the company decided to pay off the employees for the shares who joined before x date. I was after and hence lost. I decided to not focus much into it so all good with me.
SoccerandSales
Big Shot
2
Account Executive
I haven’t but have heard you are almost always screwed unfortunately
sadandbougie
Contributor
2
Account Executive
I think the biggest thing I don’t understand is how the stocks disappeared if anyone has ever experienced this. I was originally supposed to get all 4 years in case of acquisition which is a reason why I joined
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
Years ago, I lost all equity when my company first merged with another, then quietly phased out all west coast employees. I was one of the last two standing.
I'm pretty sure there's nothing to be done. It stinks.
CuriousFox
WR Officer
0
🦊
Oh shit that sucks
RandyLahey
Politicker
1
Account Executive
Fuck dude, that is terrible. What kind of documentation do you have to confirm your stock owernship?
sadandbougie
Contributor
1
Account Executive
I have decent rapport with the CEO I haven’t asked directly however I don’t think our product was evolving at the rate they were hoping for and promising to customers it may have been the best option to exit
CPTAmerica
Opinionated
0
President/CRO
wow that's terrible. Was the company going broke? If not, shame on those founders.
Legal action only works if you had a strong agreement in place for exactly this potential outcome.
Justatitle
Big Shot
0
Account Executive
your management/ownership screwed you and all other employees. What is in your agreement?
pirate
Big Shot
0
🦜☠️ Account Executive
Ufff sorry to hear that. Likely nothing you can do. I have been in similar position though luckily not with a lot of stock
jefe
Arsonist
0
🍁
Ouch.. Hope it turns out okay.
Keep us posted
MyAnonymousName
Opinionated
0
Sales Leader
I am really sorry this happened to.
Unfortunately this is all too common, and people get sold all the time on taking less on their comp plan for more equity.
If you are getting less then 50k shares, equity is meaningless and don't let them take any money out of your pocket by telling you other wise.
Maximas
Tycoon
-1
Senior Sales Executive
Damn sounds like a terrible scenario, haven't experienced one though!

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