What happens to my employee stock options if I’m laid off?

B3GIN Team
14/11/22
What happens to my employee stock options if I'm laid off

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If you are laid off, the status of your employee stock options will depend on the specific terms of your options plan and the policies of your company.

If you are laid off from your job, the status of your employee stock options will depend on the specific terms of your options plan, as well as the policies of your company.

In most cases, if you are laid off, your options will cease to vest and will be forfeited. This means that you will lose the opportunity to purchase shares at the discounted price that was set when the options were granted.

However, some companies may have policies in place that allow you to retain your options for a certain period of time after you are laid off, known as a “severance period”. This “grace” period can vary from a few weeks to a year or more, depending on the company. During this time, you may still be able to exercise your options and purchase shares, assuming the options have vested.

It’s important to check the specific terms of your options plan and consult with your company’s human resources department or legal team to understand how your options will be affected if you are laid off.

Additionally, you may also consider consulting with a financial advisor or lawyer who can help you understand the tax implications of exercising your options, and explore other options such as selling the shares or transferring them to an eligible family member.

In short, if you are laid off, the status of your employee stock options will depend on the specific terms of your options plan and the policies of your company. It’s important to check the specific terms of your plan and consult with your company’s human resources department or legal team to understand how your options will be affected.

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