Stock Options with Previous employer

L

Lone Shark

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Hi

Apologies for being so blunt as to lead with a request for help but to be honest I'm an occasional lurker who only very recently had reason to register....

Just to explain my situation, I'm a former employee of a well known Irish plc, and did have a fair amount of responsibility. Due to this, in 2002, as reward for efforts put in, I was awarded stock options, vestable in 2005. At the time i was assured by my boss, but verbally only, that there were no conditions, however in mitigation, he's an old school guy who mightn't really have known exactly what he was talking about.

In 2004 I left the company due to burnout, on good terms, and after some time off, went travelling. Last year I went to exercise the options but was then told by the company secretary that they were forfeit due to my leaving.

The facts are the following:

(1) I have an option cert, with the company seal and signed.
(2) Accompanying that cert, I have a letter, that stated nothing more than these options were issued "subject and pursuant to the rules of the scheme"
(3) The company maintains that this is a standard clause which is true, but even then surely we should have received notification?
(4) I never received (or sought) the "rules of the scheme"

The reason I ask here is that due to a few reasons, I'm not in a position to engage in a costly legal affair. If I believe that I have a case, I will present it as such, and am pretty sure that I'll be able to reach a settlement. However does anyone have any idea how I stand from a legal viewpoint?

All opinion/comment gratefully received folks....
 
For what it's worth no options scheme that I have ever been a member of has allowed options that were granted to be exercised after leaving the job (other than, perhaps, for a short time immediately afterwards - if even that). I think it's pretty standard practice for options to lapse once you leave. Just checking the scheme rules should clarify things for you.
 
In our scheme (American Multi-national) if you leave before your options have vested, then you forfeit your right or option to those shares at the option price.

I always thought that these option schemes were a means of holding onto staff for the long-term, therefore they would be pretty pointless if you left the company and were still able to exercise your option.

From a legal point of view you would have to look at the "rules of the scheme", but I don't think you'll get much joy there either.

Peadar
 
Yes - options schemes are normally there to incentivise staff while they are employed and not to benefit those who leave (unless they have already exercised options and acquired the shares beforehand). I very much doubt that you have any case over this to be honest.
 
Just to follow up on this. I checked the terms & conditions of my current (US based) employer's stock option scheme and it allows for grantees to exercise options that have vested for up to 90 days after they have left the employment of the company.
Exercise Period Following Termination:

This Option may be exercised for 90 days after termination of the Optionee‘s Continuous
Status as an Employee or Consultant. In no event shall this Option be exercised later than the
Expiration Date.
Click to expand...
I think that this is pretty standard with US style option schemes. I don't know if it is common with other, e.g. Irish, schemes. Ultimately you need to get your hands on the rules of the scheme and then things will be a lot clearer.
 
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