zlacker

>>fnbr+(OP)
So part of their compensation for working is equity, and when they leave thay have to sign an additional agreement in order to keep their previously earned compensation? How is this legal? Mine as well tell them they have to give all their money back too.

What's the consideration for this contract?

>>Button+7J
The thing is that this is a private company, so there is no public market to provide liquidity. The company can make itself the sole source of liquidity, at its option, by placing sell restrictions on the grants. Toe the line, or you will find you never get to participate in a liquidity event.

There's more info on how SpaceX uses a scheme like this[0] to force compliance, and seeing as Musk had a hand in creating both orgs, they're bound to be similar.

[0] https://techcrunch.com/2024/03/15/spacex-employee-stock-sale...

>>nurple+221
Whoa. That article says that SpaceX does tender offers twice a year?! That's so much better than 99% of private companies, it makes it almost as liquid for employees as a public company.

>>tdumit+V22
Which in a real way makes the threat of being left out of liquidity rounds that much more powerful a tool for keeping people looking forward to an actual windfall in their lane.