Stripe Is Raising $6B to Resolve Employee Tax Issue

Re:Stripe Is Raising $6B to Resolve Employee Tax Issue by chowchowchow on Wednesday March 08, 2023 @09:03PM (#35077513)

RSUs do expire if they do not have the qualifying events to convert to shares in time, with a window similar to option expiry.

It sounds like Stripe is going to declare a qualifying event which will convert outstanding RSUs into shares which will bring along with it a major tax implication for the RSU holders, who would be in a really tough spot if they got a windfall of totally illiquid Stripe equity. So Stripe is going to buy shares to facilitate tax withholding, for which they need the $$ they are raising.

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Re:Stripe Is Raising $6B to Resolve Employee Tax Issue by choppaface on Thursday March 09, 2023 @01:10AM (#35078703)

Huh, did Stripe move to RSU-based packages earlier than typical? So they would have had to move from options to RSUs in, like, year 4 of the company? Didn't Facebook not do RSUs until year 6?

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Re:Stripe Is Raising $6B to Resolve Employee Tax Issue by chowchowchow on Thursday March 09, 2023 @10:15AM (#35082039)

I think that’s right. If the RSUs had a 7 year window and they are expiring this year it means they started granting them in 2016.

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