Using double trigger vesting (the RSUs vest only when both the normal vesting period is up and the IPO/exit happens), the tax situation can be managed. I know of pre-IPO startups doing RSUs.
Sorry for the late reply but... doesn't double trigger vesting mean you forfeit the equity if you leave before the second trigger?? That's insanely employee-unfriendly. Extending NSO exercise windows is so much simpler.
> Sorry for the late reply but... doesn't double trigger vesting mean you forfeit the equity if you leave before the second trigger?? That's insanely employee-unfriendly.
That is right. These typically make sense only when the IPO is imminent.
> Extending NSO exercise windows is so much simpler.
Agreed.
