Bold strategy given how most vesting cliffs work. He was betting on not being caught for a year.
How do SV equity grant agreements work? I assume that even if he had cliff vested his initial tranche, there’s still a way for the company to cancel or repurchase vested shares if a “for cause” situation existed?
It is in some contracts but I wouldn’t say it’s in every contract. Only one startup I worked at had a clawback cause.