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Legal Comp question

Company A hired Employee X with a comp package that includes stock options with the usual 4 year/1 yr vesting/cliff and double trigger. The package also includes a 4th year anniversary bonus. If the company gets sold (say on the 3rd year), would Employee X be entitled for the 4th year bonus as well? If he/she is, who technically pays for it? Company A or Buyer?

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

I'd talk to the attorney. Depends on what is agreed to in the purchase/sale agreement - anything can be carved out.

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