Protecting Your Interests at All Costs

Equity agreements can be a significant part of an executive’s compensation package, offering the potential for substantial financial rewards. However, these agreements can also be complex and may lead to disputes. If you are facing issues related to your equity agreement, it is essential to seek legal guidance to ensure your rights and interests are protected under California law. As an executive employee, your equity agreement provides you with an ownership stake in the company, aligning your interests with the company’s success. 

These agreements often include stock options, restricted stock units (RSUs), or other forms of equity compensation. Ensuring that the terms of your equity agreement are clear and fair is crucial for safeguarding your financial future. To learn more about how Kesluk, Silverstein, Jacob, & Morrison can help you with your equity agreement, reach out to our Los Angeles offices and set up your consultation with a member of our team today.

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What’s in an Equity Agreement?

An executive equity agreement typically includes the following key elements:

  • Specific details that lay out the type of equity being offered, such as stock options, RSUs, or other forms of equity compensation
  • A vesting schedule, which is the timeline over which the equity will vest, specifying when you will earn the right to the equity
  • Something known as an exercise price, which is the price at which you can purchase the stock
  • Performance conditions, which are any performance metrics or conditions that must be met for the equity to vest
  • Your rights and restrictions as an equity holder, including any restrictions on selling or transferring the equity
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Common Equity Agreement Issues Faced by Executives

Equity agreements can be complex documents, and it’s unfortunately all too common for employers to rely on certain tactics that might see them saving money by awarding an executive employee less equity. The following represent some of the issues you may encounter related to your equity agreements:

  • Ambiguous Terms: Vague or unclear language that can lead to misunderstandings about the vesting schedule, performance conditions, or other key terms.
  • Unfulfilled Promises: Situations where the employer fails to deliver on promises made in the equity agreement, such as granting the promised number of shares.
  • Changes in Terms: Employers sometimes attempt to change the terms of the equity agreement after it has been signed.
  • Tax Implications: Complex tax issues can arise from the exercise of stock options or the sale of vested equity.
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Offering Executive Employees the Legal Protection They Deserve

California law provides several protections for employees, including those working at the executive level, to ensure that they’re treated fairly and that business owners are employing transparent employment practices. If an employer breaches the terms of an equity agreement, you may have grounds for a legal claim.

If you encounter issues with your equity agreement, we recommend consulting with one of the highly experienced employment attorneys at KSJM. We can help you understand your rights and the best course of action to resolve any disputes that may arise, leveling the playing field between you and your employer so you can recoup the wages you’re rightfully owed.

For more than 30 years now, we’ve been working alongside hard-working Los Angeles individuals and their families, and we’re ready to help you with the support and guidance you need to ensure that your equity agreement dispute is resolved fairly and properly. To get started, reach out to our Los Angeles offices and set up your free consultation today.

Contact Us for a Free Consultation

If you are an executive facing issues with an equity agreement, contact a Los Angeles equity agreement issues attorney at Kesluk, Silverstein, Jacob, & Morrison today. We offer free initial consultations to help you understand your rights and determine the best course of action. This risk-free consultation is your opportunity to learn about the details of your case and determine your next moves. We operate on a contingency fee basis, so you don’t pay unless we help you with a successful resolution. To learn more, reach out and set your appointment today.

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