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Not commenting on this particular situation, but to answer your question in general:

If a company has an IPO, there are no "employee retention payments", so it's better than that :)

Employee retention payments are actually a way to give employees a somewhat better deal than investors, though typically they will be subject to vesting.



> If a company has an IPO, there are no "employee retention payments", so it's better than that :)

The reverse split of common before preferred share conversions for IPO are often a big screw to the employees. Many are also unaware of it, as they don't dig through the S-1. (Atheros was the largest one I saw in this camp.)


Reverse split doesn't screw employees, it just changes the math (10000 shares at $1/share is no better than 1000 shares at $10/share).


> Reverse split doesn't screw employees

It absolutely screws the employees when the common is reverse split, but the preferred-to-common conversion factor remains the same.


That's not how it works.




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