![]() It refers to a Management Partnership agreement which isn’t public and it’s unclear if employees ever get to see it (my guess is not): Here’s the relevant language in the stock option grant agreement. And any vested options that you’ve exercised (meaning you paid cash for them) that were turned into actual shares could simply be bought back by the company at the price you paid, regardless of their current value. With Skype stock options the company has the right to not only terminate unvested options, but also vested ones. ![]() At least that’s the way things have been done over the decades. If options are vested you can exercise them, pay for the stock and own that stock. ![]() The vast majority of stock options granted to startups have a vesting period, typically four years, with chunks of those options becoming vested during that four year (or whatever) period. ![]() Skype’s response boils down to saying that the employees were fired because they weren’t good employees, and that the value of the stock is negligible and didn’t affect the decision making process.Įmployees aren’t even able to keep the vested portion of their stock options. Skype is being criticized for terminating employees immediately prior to the closing of the Microsoft acquisition, and people are assuming they’re doing this to keep the value of those employees stock options. ![]()
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