Jun 262011
 
Clawback Provisions in Option Grants (Don't pull a Skype!)

Over at TechCrunch, Michael Arrington is having a fit over a “clawback” provision in Skype’s Option Agreement that required a departing executive to sell back any stock received when he exercised his stock options, at the same price he bought them for. (The executive, Yee Lee, posted about it on his new company’s blog.) Effectively, this denies the executive the entire purpose of having stock options — to gain from the company’s growth. Considering that [...]