Date: 18 Set 2021 0 Comment Posted by: mariodanieledicamillo
Acceleration with a single trigger, based on involuntary dismissal, is a little more unusual and leads to another set of problems, because the exercise is not so much about the employee being efficient enough to keep his job as the financial consequences of his departure. If the employee has a relatively large equity position, it can be very difficult to replace or degrade the employee to the remaining shareholders without significant dilution. The first type of acceleration to discuss, and the most user-friendly version of the staff, is acceleration with a single trigger. This means that in the event of a single event, some (or all) insolvent actions of the employee are unshakable (and become execalable in the case of stock options). This is a much rarer mode of acceleration and is usually only seen among founders and high-level executives, if at all. For this reason, an individual-trigger acceleration of unshakability related to a change of ownership is unpopular. This means that the new owners, if they want to keep these employees, have to soften the pot to encourage the original employees to continue the new organization, which increases the cost of the transaction. . . .