|
|
|
|
|
|
by bd_at_rivenhill
4521 days ago
|
|
|
Regarding the second point, failure to deliver is an insurable risk, and would probably spawn a related market in derivatives. Anyone trading the contract on the shares that the employee wishes to sell will probably go over the employment agreement and the corporate bylaws very carefully in order to assess this risk. Under what conditions have employers been able to pull back shares that are already vested without being sued into oblivion? |
|
|
Yes, but whoever insures the risk would face the same difficulty in getting enough information to properly assess the risk. I'm not saying it's not doable. However, it might not be doable well enough, and cheaply enough, that there's enough margin of safety for the investor, above the lowest price at which the employee would be willing to 'sell'.
Under what conditions have employers been able to pull back shares that are already vested without being sued into oblivion?
Skype pulled back options that were already vested: http://finance.fortune.cnn.com/2011/06/24/skype-vesting_cont...
I'm not aware of any similar instance for vested shares.