Do buying companies pay employees for unexercised options?
October 10, 2014
Date: Sun, 03 Jun 2007
From: Diane
Hi Michael-
I have been reading information on your web site about non- qualified stock options. Does a buying company typically reimburse employees for options not yet exercised, given there is a market value to them?
Thank you!
Diane
Answer
Date: 05 Jun 2007
Hello Diane,
I have seen many cases where employees are compensated for their options relating to a purchase. I have also seen employee options converted to options for purchasing company stock. If you are working on an acquisition, you should get legal advice about these issues.
Best wishes,
Mike Gray