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What happens to my options if I leave the company?
Alison Perkins avatar
Written by Alison Perkins
Updated over 2 months ago

What happens to my options if I leave the company?

If you have an active grant of call options and you depart the company, the company's Employee Share Option Plan (ESOP) Rules (or Deed) will specify what happens to your options. Check the option rules for the scheme you're a part of to find out what applies to you. A copy of the ESOP Rules can be found under 'Supporting Documents' on your option grant in Orchestra. If not, contact your company ESOP administrator for a copy of the rules.

Leaver conditions

Some ESOP rules may specify different conditions depending on whether you are a:

  • Good leaver: Leaving the company on good terms.

  • Bad leaver: Leaving the company on bad terms, e.g., being dismissed for breach of employment conditions.

Common scenario for good leavers

  • Unvested options: Unvested options lapse.

  • Vested options: Vested options have a set time frame in which you may choose to exercise them (e.g., 2-3 months from the date of cessation of employment). If not exercised during that time, they expire and lapse.

Lapse

Options that lapse are removed from the option holder and returned to the company option pool where they are available for reallocation as part of a new grant of options.

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