How does reverse-vesting work?


2

How does reverse-vesting work? I understand the company has the right to "buy back" shares if the employee leaves early, but how exactly does that work? What price do they pay per share?

Shares Vesting

asked May 9 '13 at 13:24
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Gili
178 points
  • Check out Venture Deals by Brad Feld to get a good understanding of these issues. – Steve Jones 10 years ago

1 Answer


1

It depends on the terms of the stock purchase agreement - a common approach is to repurchase at the same price that the employee bought the stock for.

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answered Jul 2 '13 at 11:18
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Darby Wong
21 points
  • I can understand the need for a disclaimer for some people, and in some instances, but sheesh... yours is like four times as long as your actual answer! :) – rbwhitaker 10 years ago
  • Haha, can't be too careful ;) – Darby Wong 10 years ago

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Shares Vesting