The one thing that is missing from this discussion is the actual value of any stock that the employee might have received.
The headline figure of $12B, of which maybe $1B is split between 1200 employees is almost always a fantasy.
Having been bought out by a large company, the reality is far less rosy.
If you're buying a company for both its assets, and its employees, giving all the employees "fuck you" money is a very bad play. they are going to leave and do things other than work for the new company. which means on day one you have a huge brain drain, culture shift and a hiring headache.
Therefore you need golden handcuffs. Sometimes its a year, most of the time its a lot longer.
Then we have the "headline" figures. Most of them are bollocks. Ctrl-labs supposedly was sold for $500m. It wasn't, it was significantly less than that. most peoples assumptions of what a stock option is valued at during a buyout it as much as 10x out from the actual value you'll receive. This is before we factor in the whole debt swap/priority stakes/other VC semi fraudulent share systems.
unless its an IPO, and you are given actual shares in your hands, most of the money that's talked about during buyouts is illusion.
The headline figure of $12B, of which maybe $1B is split between 1200 employees is almost always a fantasy.
Having been bought out by a large company, the reality is far less rosy.
If you're buying a company for both its assets, and its employees, giving all the employees "fuck you" money is a very bad play. they are going to leave and do things other than work for the new company. which means on day one you have a huge brain drain, culture shift and a hiring headache.
Therefore you need golden handcuffs. Sometimes its a year, most of the time its a lot longer.
Then we have the "headline" figures. Most of them are bollocks. Ctrl-labs supposedly was sold for $500m. It wasn't, it was significantly less than that. most peoples assumptions of what a stock option is valued at during a buyout it as much as 10x out from the actual value you'll receive. This is before we factor in the whole debt swap/priority stakes/other VC semi fraudulent share systems.
unless its an IPO, and you are given actual shares in your hands, most of the money that's talked about during buyouts is illusion.