Esop fables: A cautionary tale for those joining startups
Employee stock ownership plans can come with fine print that makes them more like golden handcuffs than staff perks
Singapore
WHEN Bob* joined his first start-up, he was promised a substantial amount of stock that could be worth millions in a few years. He bought into the start-up's vision and took a 40 per cent pay cut from his previous role.
A few months into the job, the company introduced a strike price 100 times the industry standard, along with a 30-day exercise window. This meant that Bob would have had to pay more than a quarter of a million dollars just to exercise his options. If he chose to leave, he would have had to cough up that sum in a month from his last day, or give up his options.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Startups
High Court dismisses bid by co-founder and CTO to liquidate Cake Group
Semiconductor unicorn Silicon Box vows to avoid geopolitical mire
A cheat sheet of startup and tech M&As in South-east Asia
Zilingo ex-CEO’s criminal complaint is retaliation against whistleblowers: source
Gojek and ComfortDelGro Taxi to send untaken rides to each other’s platforms
SG fintech firm Bambu shuts down after missing profit targets, says founder