Information about stock option plan

[BillH_CA]

What is the name of your state (only U.S. law)? CA

Hello,

I'm considering leaving a job at a small company at which I have vested stock options. I have never been given a prospectus of the stock plan - but the stock option offer and vesting schedule have been clearly defined in the signed employment contract.

Typically, at other companies I've worked at I've received some sort of prospectus or details about the employee stock option plan. Since this is a small company, and the stock funding has been private only (friends / family) with no venture capital maybe there is no detailed stock option plan prospectus? What should I expect the employer to provide to me when I leave the company? Do I have to exercise my options upon quiting or I lose them?

Thanks.

 

[swalsh411]

No law really addresses this. I think your question would be better posed to a financial adviser.

 

[OHRoadwarrior]

Your questions are best posed to the person acting in the HR capacity. This is what appears to be an ESOP. CA ESOP rules are very strict. An outside company must be in charge of issues regarding the administration. Terms of the buyout will be set in the plan documents. They typically allot a certain percentage of your ownership be bought out at the first year and then the remainder spread out over subsequent years. Your share value fluctuates according to the profit of the company for each year you vested. This would not be a lab by chance would it? The only strange thing is your mention of friends. This might indicate they are not in compliance with CA law.

 

[davew128]

Your questions are best posed to the person acting in the HR capacity. This is what appears to be an ESOP. CA ESOP rules are very strict. An outside company must be in charge of issues regarding the administration. Terms of the buyout will be set in the plan documents. They typically allot a certain percentage of your ownership be bought out at the first year and then the remainder spread out over subsequent years. Your share value fluctuates according to the profit of the company for each year you vested. This would not be a lab by chance would it? The only strange thing is your mention of friends. This might indicate they are not in compliance with CA law.

What makes you think CA law has anything to do with it? This is an ERISA matter which preempts any law CA MIGHT have.