Regarding stock option details in offer letter

Senior Manager

Hello,

I am pasting a paragraph from my offer letter which was given to me when I joined one firm 3 years back.

I want to know the following.

1. Will I get 700 shares from the company or do I need to purchase shares ? Verbally I was told that I will be given shares by the company.

2. I have completed 2 years and 8 months but I have not received any shares so far. Shall I request for it ? Guys please help me as I don't understand the language that is used in the offer letter.

 

The Company has decided to grant you an option to purchase 700 shares of the Company's Common Stock at a price per share equal to the fair market value per share of the Common Stock on the date of grant, which is the date of your joining, as determined by the Company's Board of Directors. 25% of the shares subject to the option shall vest 24 months after the date your vesting begins subject to your continuing employment with the Company, and no shares shall vest before such date. Additional 25% of the shares shall vest at the end of 3rd year and the remaining 50% shall vest at the end of fourth year subject to your continuing employment with the Company. During the second , third and the fourth year of vesting, the amount of shares that are due to vest that year shall do so in a monthly manner. This option grant shall be subject to the terms and conditions of the Company's Stock Option Plan and Stock Option Agreement, including vesting requirements. No right to any stock is earned or accrued until such time that vesting occurs, nor does the grant confer any right to continue vesting or employment.

Thank you so much.

Regards.

 
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FIN

-"700 shares of the Company's Common Stock at a price per share equal to the fair market value per share of the Common Stock on the date of grant, which is the date of your joining,"

Fair market value as on DOJ. You can find out this value from internet or company.

-"25% of the shares subject to the option shall vest 24 months after the date your vesting begins"

Thus 25% of 700 shares should vest with you, as you have completed 24 months.

-"This option grant shall be subject to the terms and conditions of the Company's Stock Option Plan and Stock Option Agreement, including vesting requirements."

Has the company supplied these documents to you, and have you gone thru the terms and conditions and submitted the forms/agreement to company?

-"No right to any stock is earned or accrued until such time that vesting occurs"

 Approach the company for getting the shares vested with you.

Companies offer stock option as a policy matter and expects better retention of employees.

Companies also incorporate that their interpretation of the clauses shall be final.

Therefore you may approach the company and obtain the clarity.

 
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