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Re:Startup Restructuring 101 by pavlov on Sunday November 27, 2022 @06:03AM (#33762095)
But will that compensate for the almost inevitable outcome that the next liquidity event will be a massive downround compared to the $44B valuation of the acquisition?

Maybe there’s only 25% of employees left to share the pie, but the pie itself is now only worth $10B. That’s not a great incentive when asked to work nights and weekends on capricious initiatives that come and go.

Re:Startup Restructuring 101 by 411111111111111 on Sunday November 27, 2022 @06:12AM (#33762142)
It is if stopping to work is equivalent with getting deported though. Great system the US created with h-1b
Re:Startup Restructuring 101 by ghaff on Sunday November 27, 2022 @10:32AM (#33763555)
The problem is that the following is what is was intended for:

"The H-1B program allows companies and other employers in the United States to temporarily employ foreign workers in occupations that require the theoretical and practical application of a body of highly specialized knowledge and a bachelor’s degree or higher in the specific specialty, or its equivalent."

Note, among other things, the word "temporarily" and the phrase :highly specialized knowledge." The real problem is that H-1Bs are often used by companies in very different ways than their stated purpose.

Re:Startup Restructuring 101 by texasbigdata on Sunday November 27, 2022 @11:26AM (#33764100)
I’ve never received RSUs in a public company but can’t you basically set the strike price at whatever value you want? It’s just a financial instrument after all. NOTE, I’m not arguing for backdating.
Re:Startup Restructuring 101 by toast0 on Sunday November 27, 2022 @12:00PM (#33764405)
RSUs have a strike price of $0 kind of by definition. And they're income when the restriction lapses, and that's complex when the stock is illiquid, so that's not ideal (sometimes, there's a dual restriction with time and liquidity, but that's messy as well)

Stock options could have a strike price of whatever, but tax favored stock options need to be granted at fair market value. Granting non-favored options away from FMV needs to be treated as immediate income, which is messy.