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I'm confused how that could work. Let's take the same employee but have them leave the company, executing their options, just before Hooli acquires them. How do they end up vesting at all?

Are you saying: the vesting schedule on your as-yet unvested stock might reset when the company is acquired?

How often does that happen? How often does the exact opposite thing happen --- accelerated vesting on change of control? Because that other thing also happens.

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It happens all the time. More often than not the C-level will get a bonus on employee retention and tie the new stock vesting schedule up with that retention period. They in the meantime are able to immediately get bought out.

I think Michael has a very legitimate position here, and one that is not well understood at all.

As a side note, I think Netflix' strategy of paying people a lot of money with no stock/rsu's/options is the right one.

Strong agree on cash over options. I like how I understand Bloomberg to do it, too: internally liquid equity; ie, equity that is practically immediately as good as cash.

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