Suspending Forefeiture of a Restricted Stock Grant?

1 followers
0 Likes

Hi,


I have a startup client with an employee who is leaving. The employee received several restricted stock grants that are still subject to vesting. The terms of the RSPA provide for forefeiture of unvested shares if the employee leaves prior to completion of the vesting period. The departure is amicable and the board doesn't want to exercise its repurchase right but RSPA is clear that unvested shares that aren't repurchased are forefeited.  Can the board "suspend" the vesting provision in the event the employee returns as a consultant in the future?  The employee filed an 83(b) election each time. Would there be any adverse consequences to the company?  


Would appreciate any thoughts.


 


Thanks!


 

0 Replies
Reply
Subgroup Membership is required to post Replies
Join ECE - Equity Compensation Experts now
Auria Styles
over 10 years ago
0
Replies
0
Likes
1
Followers
909
Views
Liked By:
Suggested Posts
TopicRepliesLikesViewsParticipantsLast Reply
IRS Guidance on Stock Options & RSU at Private Companies
Bruce Brumberg
almost 6 years ago
00471
Bruce Brumberg
almost 6 years ago
New Tax Treatment for Stock Grants in Private Companies
Bruce Brumberg
over 6 years ago
00810
Bruce Brumberg
over 6 years ago
Legislative Update: Senate Considering Tax Change For Options And RSUs In Pre-IPO Companies
Bruce Brumberg
about 8 years ago
00691
Bruce Brumberg
about 8 years ago