Acquisition

[Abc1234]

Hi, just looking to find out if anything can be done.
So the company I am working at recently got acquired. We have been told that we can still remain a separate entity and have control on what we do with our day to day role.
The acquisition itself is not great, I have lost out on 75% of equity and will have to stay another 3 years to receive the equity even though I have been at the current company for over 4 years so I should be entitled to a total payout not just 25%. But I thought this might be an exciting opportunity so I continued to stay with the condition that my role will still stay the same and still have flexibility to do things that I want.
I am currently managing two teams but recently been told that we will have 8 people moving over from the company who acquired us to join us. This means that I will no longer be managing one of the teams and will also inherit another manager for the other team so I am no longer the sole team lead. I have had no control or input in this decision and nor has my manager. This was decided by the company who acquired us. I feel that my role has changed and I have been demoted which was not what I signed up for. Is there anything I can do here?

thanks in advance

[ULA]

I presume you were a shareholder and maybe a director/manager in the acquired company as you say you have "lost out on 75% of equity"?

I think you will need to set out more clearly what your status was in the acquired company before I can help you further.

[Abc1234]

Every employee got given equity when you join a company. But only at an exit event do they then become shares and we become a shareholder. However, upon the exit event (acquisition), we only received 25% payout for the shares and the 75% goes to shares to the company who acquired us and will have to wait 3 years before I can sell them. If I leave before the 3 years, I lose the shares. This is a reason keeping me at this company. However, if they let me go, I get to keep the shares.

Since the acquisition, they have made changes and to my role. I wanted to see if I have grounds here that they can let me go as I’m not happy.

thanks

[ULA]

On what basis can you leave the company and keep the shares, quite often there are some quite strict rules in terms of leaving before the end of the vesting period which you have stated is now 3 years? You may well need to have a thorough review of the agreement for your shares/options. It may be that the way you are thinking of leaving the company cannot satisfy the criteria to keep/sell your shares. Not having any details of the agreement you have in place, it is very difficult to comment.

Can you confirm whether any of your terms and conditions of employment such as salary, hours of work, location etc are changing or just the structure of the team you are responsible for? Restructuring was potentially inevitable given an acquisition situation has taken place. Have you had any discussions regarding your concerns about your position moving forward as a result of the proposed changes? If not, then I would suggest that you should do that as your first course of action.

[Abc1234]

I can only leave the company and keep the shares if it was beyond my control (I.e. health reasons or I have to take care of a sick family member). If I leave before the 3 years because I found a better job then I will not be allowed to keep what has not vested.

Nothing is changing except my job responsibilities and perhaps now hindered career progression. I have had some discussions with my manager but nothing has come out of it.

[ULA]

If nothing has changed except some job responsibilities due to the acquisition, then I am not sure other than raise a grievance, there is much you can do at this time particularly of you are keen to be in a position to vest your shares.

Yes, there are some more drastic options, but I am not sure they would achieve what you want which sounds like to leave the company but maintain your share interest. As I have said I do not know the terms under which you have the shares, so it is difficult to advise but they are usually very aligned to time periods before vesting is achievable.