Vested stock in new role

[strain]

Hey everyone, looking for a bit of advice.

I started a new role end of Jan, Im currently in the middle east.

Job was low-balled to me with common stock vested into 4 years, More than I was earning previously and tax free so would have been stupid to turn it down but the overall workplace is very toxic, in 5 weeks the guy who hired me has left (he joined late 2020), another guy left after less than 2 months and somebody else I work closely with I have heard is looking elsewhere (after 2 months).

I'm more than happy to keep my head down and crack on, I've worked under similar circumstances before and I'm not going to leave without something to go to, I certainly do not believe I will make it 4 years but I am aiming for 1 year, to learn the culture and get some experience here and then move on to something a bit more work/life balance or possibly freelance.

My question is based around the common stock vested into 4 years. On my job offer it was broken down into yearly figures, Year one 1000 shares, year two 2000 shares, year three 3600 shares year four 4800 shares.

Now we aren't public but thats the plan, either be bought out or go public (startup) Shares for me are valued at £4.80 a share, so one year £4800, (numbers have been altered but 4800 is correct)

If I leave after my first year, can they reclaim them / do I lose them, or will they pay me out or let me hold them?

If they never get bought / go public I assume my stock is worthless.

I earn a good wage and the stock is just a bonus, I didn't accept the job just for them but at the same time I wont walk away from £4800. A few things have changed since I joined, Eg I was told about my holidays but also given XX work from home days per year, I've booked to return home for 2 weeks in the summer off the back of this, but told a few days ago WFH are after the first year (I have already done 1 WFH day and would happily walk out if they didn't let me WFH in the UK for 2 weeks (company policy will stop me takin 2 weeks straight in holidays and would wipe out my years allowance if it did))

thanks

[Wilmslowboy]

There is normally a good leaver and bad leaver provision, which should set out the rules.

For example:-

Bad leaver, fired or resign - normally buy the vested shares back at the price you paid.

Good leave, ‘asked to resign’, role made redundant etc - buy back the vested shares at the latest valuation, or allow you to keep until the next valuation (and buy back at that price). Valuations can be trigged by fund raising event or even demanded by the lenders etc

[Pit Pony]

The holidays ? I would have a negotiation now. They are still goingnto.want you to stay, and if you put your points strongly, I'm sure that there is a compromise to be had.
How does The tax free bit work if you are working from.the UK?

Anyway, having taken only one week she time for years, I decided a few years back that any summer holiday needed to be 3 weeks otheevwise too much hassle.

[strain]

Im not in the UK i'm in the middle east - income is tax free.

I'm going to hold off the discussion, Ill let them know i've booked something in a month or so, I'm more than happy to walk away if they dug their heels in but I know they wont

Thanks for the replies- so am I right in thinking if I last the full year, I get the shares for year 1 regardless or how I leave (or cash)

[Mr Pointy]

Is your contract silent on the issue? If so, I wouldn't pin much hope on getting the stock if you leave.

Have you asked those who left what happened to their stock allocations when they left?

[GibsonLP]

The schedule is strange - typically you'd see 4 years as: 1 year cliff with monthly vesting thereafter.

Is the £4.50 current fair market value or the strike price they've given you? This is always a tough one to gauge how good of an offer these shares are to you especially as the CFO will be battling for a lower FMV through early rounds.
Also the exercise timeframes - if you're planning on leaving on unhappy grounds then you'll want to explore exercising the shares at a time that suits you and maybe before you leave vs the grace period after.

[mr_spock]

Is this actual stock or a stock option grant? Usually options return to the pool when someone leaves, whether vested or not. If there's no event which allows the exercise of the options, they're worthless anyway up to that event. Wouldn't it be a capital gain rather than income, in which case a holding of under 10 years would attract CGT in some middle east countries (UAE for example).