Anyone who understands stock options?
This is what I think I can do:
Several years previously the owner/major shareholder of a newly public company is loaned money by an employee/friend to help the business through a difficult time.
They agree the loan will be paid back through Restricted Stock Units.
Is this a valid scenario?
- That the earnings per share must reach a certain level.
- That the RSU cannot be exercised before a certain date. (ie. time and performance related - can I do that?).
- The employee may have left the company but will still be a limited voting shareholder on the board, but once the date is reached the employee will acquire full voting rights.
- The tax will be paid on vesting - ie. this date, assuming the earnings per share have reached the required level (ie. the company accounts must have expensed the tax withholding. I presume those shares are purchased back by the company and the money handed to the HMRC?).
- That before exercising right to sell the employee must inform the company of their intention to sell one week before selling.
My objective: I want the former employee's 'letter of intent to sell' to panic the CFO of the company into murdering employee before the date is reached, because he's hiding that the company is in financial trouble and he hasn't budgeted for these RSU's being exercised so quickly, he only budgeted to pay the tax portion. The former employee had always stated they wouldn't sell but their circumstances have suddenly changed.
I want the voting rights set up that way to aggravate the new major shareholder/CEO into wanting to get the former employee out of his company - giving him a motive for murder, too but really he wants to force her to sell, he doesn't know the CFO has messed the company accounts up so badly.
Adding an additional question: Could this still work in a private limited company? Do RSU's apply or would they just be a private distribution of shares arrangement?
Hope that all makes sense!