Stocks As Compensation? It Can Be Complicated.
As an employee, you rely on your compensation agreements. You plan your life around how you expect your stock options to mature. However, many companies manipulate stock options results to save money on what they owe you.
At San Diego Biz Law APC, we represent employees fighting their current and former employers on their stock options. These are high-stakes, high-dollar matters with massive implications for you. We are a respected employment law firm offering big-firm service that we personalize for our clients in San Diego and across California.
A Case Study In Stock Option Disputes
Let’s look at our lead stock option attorney’s current case: It involves several important points, from wrongful termination to unethical, illegal employer requests over safety standards. In this case, our client was offered stock options as part of his compensation package, which was vested before termination, and some estimates place its worth at $70 million.
His former employer, however, has only offered a paltry $400,000 in compensation. The company used an alternative calculation to arrive at their offer, aside from the more common standard Black-Scholes model formula. In doing this, the company took an aggressive stance on how much it valued its employee’s contribution.
We partnered with a valuation expert with extensive experience in this matter and are advocating for the full amount of what our client deserves.
Stock Options: A Risk-Based Reward
As compensation, a stock option gives an employee a somewhat risky payment. The performance of a company’s stock is not a guarantee. However, if that stock performs well and the employee’s bet works out, they deserve to reap the benefits of that reward.
A company retroactively recalculating a massive stock option value in its favor is highly suspect. In the case above, the company essentially revalued its employee’s vested stock options as a form of punishment.
Skilled, Aggressive Employment Law Representation
Our firm comprises dedicated, confident litigators who take on tough, high-stakes legal issues. They take on complicated and highly contentious cases, and they have had a lot of success. Contact our firm at 619-793-4827 or send us an email to talk about your issue.