Former Skype Employees Lose Stock Options

Following Microsoft's acquisition of Skype, former Skype employees are challenging the company's stance on stock options, including those they thought were "vested" or guaranteed. In a letter to one departing employee, the issue of stock options was explained:

"Not withstanding the exercisability of your Options, Section 12 of your Stock Option Grant Agreement (the 'Grant Agreement') provides that any shares issuable upon the exercise of your Options would be issued on your behalf to the Partnership."

Well that clears things up.

  Skype and Microsoft
Read more here.

Assignment Idea:

  • Read the letter about stock options. See how many nominalizations and prepositions you can identify.
  • If you have enough finance knowledge, try to rewrite the letter in plain language.