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As much as I want to shit on Zenefits I think they actually doubled up employee options as well.

Sacks was pretty good about handling that situation.

Still agree with your overall point though - it's going to be a long, long time before those shares are worth anything.

If everyone gets 2x shares/options, there's no change in ownership -- someone lost out, otherwise they wouldn't do it. And preferred shares are tickets for the front of the line, and quite possibly with onerous terms that aren't public (whether it's a multiplier, or something else). Between a lowered valuation and more shares given to investors and the burden of a high valuation..... things don't look bright for the future of Zenefits, and especially not their employees.

From the news, it sounded like the repricing benefited Series C investors, and current employees got equity increases.

So founders, former employees, and earlier investors probably lost out...

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