Sophia Kunthara at Crunchbase presents a simple guide to equity for employees who have been laid off from their companies, including types of equity they might be holding, the time-frames in which ex-employees need to exercise options, how to exercise them, and the tax implications.
From our experience, employees in the fintech world are usually uneducated about the equity they hold – especially how to treat it – and risk losing the opportunity to exercise options post-layoff, if that’s what they hold. Get in touch with HR, Finance, or company leadership immediately to understand how to exercise options you hold, should you choose to. What’s the process? Do you need to do so in person? Is that even possible with COVID-19, work from home, and social distancing? The process may not be quick, so start now.