Share options in a private company?

[rogeroleary]

My son, joined a fairly well know Irish company around 2012 and in 2013 it seems he was granted 15,000 B ordinary shares. The document he signed stated that they will vest and become exercisable subject to certain conditions including:

• no option shall be exercisable more than 7 years after the date upon which it was granted
• shall not be exercisable until there is a Relevant Event
• vesting shall cease upon cessation of employment

It was made clear to him that the Relevant Event would be a sale of the company or an IPO both of which were strategic considerations (and remain so). My son left the company in 2015 and although he has kept in touch from time to time with the owners it seems very vague what if any rights he enjoys arising from these options. The company grew from when he started a team of around 20 people to > 200 so it's quite significant.

I'm just wondering a) if it appears he should have some entitlement in the event that the company was sold / IPO'd and b) how would he be able to get a definitive line of exactly what he might be entitled to.

Any advice would be much appreciated,

Roger

 

[gnf_ireland]

@rogeroleary My experience with share options is that they always cease once you leave the employment of a company. This would also appear to be the case here, based on your point 3 listed above

vesting shall cease upon cessation of employment

You son left the company in 2015, so I would say he has no entitlement in the event the company was sold/IPO'd.

Why do you (or your son) think there would be an entitlement here when the clause is so clear?

 

[Leo]

These are golden-handcuff schemes designed to retain staff. Once you leave, you cease to have any entitlement.