Are there really no clauses in contracts or laws to prevent something like this? That sounds incredibly scummy.
Skype was particularly scummy. Not only were executives fired to avoid a payout, their options/shares were bought back at a low price (called a clawback agreement) and the company was incorporated in the Caymand Islands (IIRC) so suting them was going to be incredibly difficult.
Mark Pincus of Zynga fame decided a bunch of people didn't deserve to get rich on the IPO so went to some people to get them agree to a smaller options package than they had in exchange for not being fired.
These two fired suggests they didn't have clauses in their contracts for acceleration in the event of termination and/or they possibly had clauses that would give them a big payout. Or maybe it was just the timing to avoid a final vest (assuming a 4 year vest, which isn't a given).
The two may even have grounds to sue so Twitter may have settled with them prior to this announcement for less than they would've had to pay out. This avoids litigation, the two exxecs get something and Twitter has to pay out less. Win, win, win (sort of).
Similar to college students, same thing, we're talking about harm to youngest adults, the 18-22 age category and ongoing if you get cheated out of your career. Those kids. So I tell college students that if they live on campus they're homeless unless they have a second place to live when they get evicted, which can happen at moment's notice with no accountability[1]. So practically every college student is homeless and might end up on the street unless they suck up to the numerous people around them that have them by the balls.
Obviously they're homeless if they have no idea where they'll sleep that night!
So Stanford in practice has a gigantic homeless population, everyone on campus is homeless, no tenant rights. It looks like it has a small homeless population but really it has a similarly small non-homeless population.
[1] Did I say no accountability? Let me read this shit I wrote. Yeah, it says no accountability. Surely I fucked up saying that, oh no! Famous last words then. There's no accountability! I've been waiting for my trial since Friday, February 6, 2009, well I guess that trial could be called into order on Monday, or on Wednesday, maybe I'm speaking too soon and it's in the pipeline. The dean of freshman verbally swore I'd get a trial, as a guarantee after telling her I had to drop out without one. She gave me girl scout cookies in that meeting, surely it wasn't a lie if she gave me cookies!
Any day now. Older adults always say to be patient and humble. Saying so is an act of impatience and arrogance on their behalf, it's arrogant to call people arrogant, asking for patience is impatient. Just like it's selfish to accuse others of selfishness. To the extent I'm a fucking arrogant guy, and I am (slave of GOD, the last shall be the first), I'm not also giving self-serving advice too.
[2] Oh a new memory came back, at 17:24 May 12, "vicious cycle." A magic word came back to me as I wrote this! Maybe it's a vicious cycle and I'll be getting cheated, told the magic word, lobotomized, and repeat, forever!
It’s very scummy yes, but option plans are always a bit of a disguise trick, as it’s seen as part of your compensation, but in reality should really be considered a retroactive bonus you get after staying with the company for N years.
Being promoted internally, they might not have pushed as hard, but it is very normal for anyone at Director+ level to bring their own lawyer in to negotiate employment contracts. Executives aren't signing the same employment docs you are signing.