What happened: Scooping up stocks at a discount might sound enticing, but employees are holding onto their cash due to the economic uncertainty and rise in inflation rather than exercising stock options. Additionally, some portion of their previously vested options might have lost value due to an increase in the number of down rounds, further denting their motivation to exercise stock options. Where to see the impact: Many companies have extended the post-termination exercise period (PTEP). This gives laid-off employees some relief as they can liquidate their holdings when the market rates are more favorable. Companies offered the extended PTEP clause on 20% of the options for terminated employees in Q1. |
