Negotiate Like a CEO by Stein Jotham S

Author:Stein, Jotham S.
Language: eng
Format: epub
Publisher: Political Animal Press
Published: 2022-02-24T00:00:00+00:00

I Want to Diversify

“What’s the best way to get myself fired?” Cactus Subi was a long-time client, going back maybe fifteen years.

“Guess what?” I responded.

“What?”

“You don’t see the use in communicating with me when things are going good.” It was my joke to myself. Cactus was the number two guy over at QAK Security, Inc. He had started as a coder and worked his way up from there. About ten years before, while times were good, I had asked Cactus to dinner. He had declined telling me, “I don’t see the use in that.”

“What’s the problem this time?” I asked.

“My CEO and his two favorite Board members are a three-headed hydra. They’re monsters. I can’t stand dealing with them anymore,” Cactus replied.

“And thanks to you I don’t have to! I’ve been here three years so if they fire me now, the rest of my unvested stock all accelerates, and best of all, I have five years to decide whether to exercise my fully vested stock option! Plus, I get six months’ severance.”

“I’m going to go somewhere else and diversify,” Cactus explained. “If this company goes public, I’m rich.”

“But there’s no reason to have all your eggs in one hydra’s basket. I love you man!”

“If I remember correctly,” I responded, “you get five years after the last day of your employment to exercise your option regardless of why your employment terminates.”

“But not all my stock. I need to get fired for that. You know I’m a greedy capitalist. I want it all!”

“So how do you recommend I go about getting myself fired so I can collect on that jewel you negotiated for me?

Clauses That’ll Help You Protect Your Equity

Don’t let anyone steal back your stock.

If your employment is terminated without Cause by your employer or for Good Reason by you, then you want:

Accelerated vesting of your equity;

An extended post-termination exercise period (for options);

No forfeiture clauses; and

Probably, although not always, no forced repurchase clauses (best is you have a right to require your employer to repurchase your shares – a “put” option – but your employer has no right to require you to sell them).

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