Insights and Opinions: Founder Restricted Stock 101

With our Insights and Opinions section on socalTECH, we're trying to help the startup and high tech community, including including hints, tips, and other education on the world of high tech startups. So, to that goal, we're sharing the following article from Sean Greaney>, attorney with Stubbs Alderton & Markiles, LLP, who gives an informative introduction to Restricted Stock for startup companies. Stubbs Alderton is a sponsor of socalTECH, but the Insights section is open to everyone in Southern California's high tech community.

What is founder restricted stock?

Founder restricted stock refers to shares of common stock that are owned by a founder but are subject to forfeiture upon the occurrence of certain contractually agreed upon events.  The forfeiture usually comes in the form of the company's right to repurchase the shares for a previously agreed upon repurchase price.  The repurchase price is generally equal to the price the founder paid for the restricted stock, typically a nominal amount.  The (More...)

Read all about Restricted Stock from Sean Greaney at Founder Restricted Stock 101.