Only if you exercise the options, you won't exercise the options if it's not profitable to you.
Ah, that's a good point. It's sort of the opposite: now the option holder can wait longer to decide if this is a worthwhile investment, vs "You have 30 days to exercise this or you get nothing".
Don't most options expire a handful of months after leaving the company?
Re:Patreon Lays off 17% of Staff
by mepiethree on Tuesday September 13, 2022 @07:29PM
(#32831448)
They extended the option exercise period to 5 years
The ability to extend that period isn't always up to the option-granting company; while it is possible for non-qualified stock options (NSOs), incentive stock options (ISOs) must be exercised within 90 days of termination of employment, by law.
Yes, sure, they have to dilute the company a bit by creating more stocks for the people buying it, but if your company is in enough trouble that you're laying off 1 in 6 employees, it seems financially wise to effectively be doing many small rounds of fundraising this way. It extends your runway some small amount.