First time getting equity at a biotch?
Let me explain it to you. One has shares, both options and RSU's. The strike price on the options is $5 and current share price is $45 in per share. Unfortunately, most of those shares are not vested so when Mirati comes calling they "sell" you on the huge upside of their equity piece and how you will more than make up what you are leaving on the table when we get bought out for 2x or 3x current share price that was about $100 a share at the time. Seems reasonable, as successful oncology biotechs often fetch 2x on their current share price. So you work the math, adding in a signing bonus and a few quarters of launch IC, a bump on your base, border of your current drug or job, and if things go accordingly to plan from a buyout perspective Mirati seems like a plausible risk to take.
So said employee, after the BMS announcement, looks at their previous employer's current share price and they see that it actually increased from $45 to $60 and now more of those shares would have been vested, so had they just stayed put they would have a million dollars in value, sure not all of it is vested yet but far better than making literally nothing here. Not to mention if their previous company gets bought out and the vesting gets accelerated, the share price would be even higher and all shares would be vested, so a million could be on the lower end of the loss.
If your point is, "well you never actually had the million", let me stop you there as that is nonsensical. If you look at your eTrade account and you see current account value is $700,000 and your potential account value is, $1,000,000 the last heading shows total account value of $1,700,000...meaning if you do nothing, and the share price remains exactly the same you will have have $1,700,000 at the completion of your vesting schedule. Point being if the person who took the Mirati opportunity would have just stayed put they would have $1,700,000 on their hands at the end of the vesting schedule provided the share prices doesn't tank.
Look, you may think those of us who left similar situations mentioned about are idiots, I don't disagree. I am one of those idiots, and trust me I am very angry with myself for buying into the BS from all those involved with the hiring/recruiting process. Needless to say it was an expensive lesson to learn.
yeah and I could have bought the winning powerball ticket but I didn’t. By your logic, I lost $1.6 billion.
you took a risk, it didn’t pan out, your an idiot for claiming to have lost money that you didn’t have.
if you were a good negotiator, you would have asked to be made whole before quitting
With imbeciles like the above poster it's no wonder Mirati failed miserably...
First that is terribly flawed logic...if you want to use that line of thinking the logic would be that you purchased the winning lottery ticket, but had to wait 4 years until you could cash it in, and if you do nothing at all, and the lottery was still funded, it will be there waiting for you. Cleary logic is not your thing. So the logic is had I not taken the job at Mirati I would be sitting on that million waiting to collect as it vests. Is that so difficult for you to understand?
Negotiate what exactly? Being made whole? Are you serious? I have been in oncology biotech for over 20 years and no one is going to make you whole on unvested shares. Sorry but no one in giving a million dollar signing bonus. The "making whole" part from Mirati's perspective was the equity we received was going to make those unvested shares whole and then some. That was the pitch, and if this company delivered as advertised it would have been worth the risk.
I don't disagree that I took a risk and it didn't pan but saying that the million was never mine is nonsensical. Again are you new to equity? Had I not left, those share would still the there vesting so sure, let's use your moronic semantics...I didn't technically lose a million dollars, i lost the very sure thing of an opportunity to collect on a million dollars. Either way had I stayed put I would, in all likelihood, be collecting that million dollars over the next few years.
Lastly, why are you defending Mirati? Was this a good experience and payout from your perspective?
you answered your own question Mr 20 yr oncology biotech equity stud.
it wasn’t vested, you left it on the table.
you chose poorly. Now Shut your Marren Morris hole.
you are pretty stupid…they said has they stayed…you really are a dope.
they arent the ones bitching about their bad decisions and imaginary money they left behind.
you are a whiny tool and not afraid of displaying it for everybody
"Imaginary money". You are an idiot.
Thank god for bms putting an end to the toxicity of this shitty company
Cash out???? The vast majority of our options and RSU's are deeply underwater. This is arguably the worst career decision I could have made. IC and base salary were not worth leaving for...the hope and upside of a big buyout were the only reason to come...I lost at least a million dollars by leaving my former company and coming here. Yes...I'm bitter, as this was a disaster from jump. Terrible commercial leadership, awful culture, and not that great of a drug. Good luck to BMS with this dog.
What, meek me? Meek you, and the horse you rode in on!Meek you all.
RSUs under water? Wtf are you talking about? RSUs can sell for $0.01 and still be above water you bozo. They may have fallen in value but they are still above water. You’re an idiot.
