Equity (Stock Option, Restricted Stock and Other Equity) Agreements
For more than twenty years, Law Offices of Jotham S. Stein P.C. attorneys have been advising clients about their equity agreements, including stock option agreements, restricted stock (RSU) agreements, phantom stock agreements, management carve out agreements and change in control agreements.
Indeed, many of our executive and entrepreneur clients take jobs because they believe their new job is an “equity play.” The employee taking a position because it is an “equity play” will probably earn less than he or she could otherwise, but does so for the significant potential upside the employer-offered equity presents.
One of the most important issues when entering into an equity agreement with a new employer is protecting the equity should a situation change and/or things go wrong. We regularly advise our clients about the best ways to protect their equity vis-á-vis their employer, and the risks of choosing not to do so. In addition, we regularly advise our clients about related issues that might affect the value of their equity agreements, including liquidation preferences, harmful change in control clauses, and the status of an employer’s capitalization table.
If you are taking a job where equity is important, negotiating an equity package while employed, or leaving an employer with equity-related concerns, then the Law Offices of Jotham S. Stein P.C. may be right for you.