[ralph84]

> Third, if you have been with us for less than one year, we have removed your cliff and extended your PTE to 1 year from today. You joined Carta to create owners and to become one. Everyone affected today will be an owner of Carta.

PTE = Post-termination Exercise

[wtvanhest]

I saw that, but what does that mean for an employee who has been there for 3 years and has a significant amount of equity vested? Do they have to buy it immediately? If so, they might as well not even bother since cash is going to be king for those employees and risking cash + tax liability is probably far from ideal.

[VintageLight]

Carta's policy is that your PTE period is the length of your tenure. So those employees with > 3 years have > 3 years to exercise.

[adrr]

If they are non-qual options, why not make them 10 years like other companies. Why the short expiration? I'd rather have ISOs and the chance to cut my tax burden in half. More importantly not having to pay taxes upfront to exercise the options. Doesn't seem employee friendly.

[VintageLight]

They are ISOs. The standard PTE for most companies is 90 days.

[adrr]

Because 90 days is the IRS rule for options to qualify as ISOs.

[wtvanhest]

That is a solid policy. Very fair.