Labor/Employment,
Corporate
Jun. 25, 2019
Private companies and employees: Calling your attention to equity call rights
Companies seeking to reward employees for their contributions during their employment through the use of equity awards may not want former employees continuing to participate in the upside value of the company or obtaining financial information of the company following a termination of their employment.
Thomas M. Asmar
Counsel, Executive Compensation and Benefits
Skadden, Arps, Slate, Meagher & Flom LLP
Startups and other private companies often provide for the right to repurchase equity acquired by their employees (a call right) upon a termination of employment for a variety of reasons. Companies seeking to reward employees for their contributions during their employment through the use of equity awards may not want former employees continuing to participate in the upside value of the company or obtaining financial information of the company following a termination ...
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