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A comment on What software engineers can learn from the rapid collapse of Fast. Parent comment

Re:What software engineers can learn from the rapid collapse... by plasticchris on Friday April 08, 2022 @08:33AM (#30956078)
I think options will trigger this as well, this is where the “double trigger” rsu came from.
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Re:What software engineers can learn from the rapid collapse... by alecbz on Friday April 08, 2022 @11:35AM (#30958542)
As in, if a company as 500 (now 2000 I think) options-holders, the SEC will start regulating them as if they're public? I don't think that's true?

Double-trigger RSUs are AFAIK just a way to avoid paying taxes on illiquid assets. The reason to shift from options to RSUs at all is (I think) that once the company's FMV gets high enough, the strike price and taxes due for the options will be so high that employees won't be able to afford paying them if they leave the company.

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Re:What software engineers can learn from the rapid collapse... by plasticchris on Saturday April 09, 2022 @11:59AM (#30969145)
No but companies don’t want to risk that 2k of the options holders might exercise and force the issue so it’s functionally the same.

I thought it was common knowledge that fb started the double trigger thing to avoid this limit, and I heard something similar when a startup I was in converted options to RSUs.

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