Laid off and lost my stock options (but they said I could keep them) - am I out of luck?

Submitted by those_pesky_kids t3_zzkery in personalfinance

I'm pretty sure the answer to my question is going to be "tough luck," but here we go...

I worked at a startup that offered stock options after the first year as part of my offer letter. Due to poor industry conditions, I was laid off just before my 1 year anniversary (no performance issues, just needing to downsize). I was told I could keep my stock options, but then afterwards they were cancelled. They're now saying it was never possible for me to keep my options, which is a total 180 from what they said in my exit interview.

Normally I'd say it is what it is - at will employment state and the risk you take on a startup and all. But soon after I was let go, they announced a formal large-scale layoff (after what would have been my 1-yr anniversary date). Now it feels like they intentionally let me go earlier when they could have waited and let me go along with everyone else and my options would not have been impacted.

Has anyone experienced anything like this before or think there's any value in looking at legal help? I think the answer is no, but it was a sizeable chunk of options and it just feels sketchy, so I thought I'd ask just in case.

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nozzery t1_j2c4wi8 wrote

No. You've no recourse. Agreements are worded with cliffs for this exact reason. Unless you have "you can keep your stock options and X will vest immediately" in writing. Otherwise they will just say you misunderstood the verbal discussion (which maybe you did). Move on.

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FourWayFork t1_j2c7aw3 wrote

They probably did let you go right before your anniversary date. Unfortunately that is how it works and that is why they put those dates in there.

My wife was let go the day before her two year anniversary date from a job (when two years was the magic number for things vesting).

When they look to downsize, I can basically guarantee you they are looking at the list of people who are about to vest and picking from that list.

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yupiknowitsreallyme t1_j2c8nnb wrote

look up the WARN act for your state. Depending on timing, you may be part of the mass layoff group and entitled to the same treatment as the larger group.

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oldwatchlover t1_j2cedv7 wrote

if it's any consolation, startup stock options are rarely worth anything.

and to "keep them" you would have had to exercise them, which would mean coming up with the cash, something often hard to do as you are being laid off.

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tactical808 t1_j2cs68c wrote

Check the language in your award agreement document.

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warlocktx t1_j2d5907 wrote

If they are doing large scale layoffs their options probably aren’t worth anything. And even if the were, you would have to spend YOUR money to exercise them. Are you in a position to spend money on that right now?

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kflawn t1_j2dt1wu wrote

If they are laying everyone off how good can the stock be?

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shadow_chance t1_j2fcdbh wrote

The stock is probably going to be worthless, so don't consider this a huge loss.

That said, my company did a layoff and I'm 99% sure they accelerated option vesting for those affected.

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