What happens to unvested options in an acquisition?

Unvested portion will be assumed. – This means the acquiring company will “convert” your old grant into a new grant of roughly the same value (taking the intrinsic value of your old awards and converting them into shares at the new company’s price) and at least the same terms.

What happens to unvested restricted stock in an acquisition?

Vested vs unvested shares in a merger, acquisition, or sale Restricted stock units (RSUs) and restricted stock awards almost always settle in shares or cash upon vesting. If your shares are unvested, you haven’t yet earned the shares, at least not under the original ‘pre-deal’ vesting schedule.

What is an unvested stock option?

If a company has set aside a certain amount of stock for you, but stipulates that certain conditions have to be met before these stocks are assigned to you, such shares are considered unvested. Until the shares vest, you cannot sell or transfer them to another party.

What happens to employee stock options in a spin off?

The number of shares subject to your outstanding stock options will be adjusted and the exercise price of each stock option grant will also be adjusted to account for the potential change in stock price of Mondelēz at the time of the Spin-Off so that the options have an equivalent intrinsic value prior to and after the …

Can unvested shares be taken away?

Is this standard practice? A: Yes. It is customary for a company to take back unvested options when an employee leaves the company for any reason. In fact, this is probably included in the stock option agreement you received when you were granted the options.

When can employees sell stock after SPAC?

If a startup employee’s company merges with a SPAC, they can sell stock as they would in an IPO. Employees are typically subject to a lock-up period, but it might not last the traditional 180 days. Employees should ask a few key questions about how the deal is structured to help them plan ahead.

What happens to my stock after a SPAC merger?

If the SPAC does not complete a merger within that time frame, the SPAC liquidates and the IPO proceeds are returned to the public shareholders. Once a target company is identified and a merger is announced, the SPAC’s public shareholders may alternatively vote against the transaction and elect to redeem their shares.