"This highlights the importance of understanding the origins behind market standards, especially those that originate from specific tax and/or regulation, and their implications."
"The standard 90 days post termination exercise period for US stock options causes a lot of vested stock options to go unexercised by leaving employees."
Rickard Vernet emphasizes the importance of understanding stock option terms, particularly the implications of the 90-day post-termination exercise period (PTEP) standard in the US. This short window can cause many departing employees to forgo their vested stock options due to financial difficulties, leading to a loss of potential value. Vernet argues that this US-centric standard may not be applicable or beneficial for European startups, who may blindly adopt it without considering the differing tax regulations. He advocates for a deeper understanding of these standards, to better align them with local contexts.
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