Startups Take Note: Pinterest Will Allow Ex-Employees to Keep Vested Stock Options for Seven Years

Founders Workbench

Founders Workbench / Goodwin (2015)

TL;DR

Analysis of Pinterest's landmark 2015 decision to offer 7-year exercise windows.

Documents Pinterest's landmark decision to extend exercise windows to 7 years, one of the first major tech companies to do so. Provides legal and practical analysis for other companies considering the change.

Key Findings from Workbench (2015)

  • Pinterest extended exercise windows to 7 years for employees with 2+ years service
  • Move was seen as setting new standard for startup equity practices
  • Legal and tax implications are manageable for companies adopting extended windows
  • Other major companies followed Pinterest's lead

Related Mechanisms for Startups Take Note: Pinterest Will Allow Ex-Employees to Keep Vested Stock Options for Seven Years

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