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Originally Posted by citivolus
Very interesting, assuming the last person in this position held stock, could they still have that stock or would they be forced to sell it back? Next, do you know how the price of any stock is set if there be no IPO? I also assume they stayed long enough to become vested and if there was no specific provision to sell it back then they would be able to keep it indefinately. Sorry for all the questions but this is all new to me.
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Every ESOP or option program has countless ways it can be run but, in most startups (which believe it or no Inc is), the stock acts as a glue. This glue is only good when issued as vesting shares and with a nominal value, often set by the board with advice from an independent firm.
Once an IPO happens the value of the shares then increases but the vesting schedule remains the same.
If somebody leaves the organization, than any non-vested shares revert back to the company and the payout of the vested portions is based on the applied nominal value.
I'm not saying this is the case with Inc, just explaining the process.
Of course, the job description doesn't say what kind of stock. It could be a stock of i2s that he then gets to sell
. Watch out e-Bay, here comes Klee!
Steven