90 Day Exercise Windows

Rishi Gupta

Stanford CS (2016)

TL;DR

Stanford analysis explaining why 90-day exercise windows are a harmful historical accident.

Academic analysis of the 90-day exercise window problem from a Stanford researcher. Documents the history of how this standard emerged and why it persists despite being harmful to employees. Provides intellectual framework for policy change.

Key Findings from Gupta (2016)

  • 90-day window is historical anachronism from quick-IPO era
  • Median time-to-IPO now closer to 10 years
  • Options designed for 4-year vesting don't work for 10+ year private periods
  • Companies choosing extended windows face no negative consequences

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