Originally Posted by TheOtherGeoff
first off, almost all stock options deals are backed by stock acquired at the time of the deal. I can't see Apple terminating someone to save money on Stock Options, unless they were offering options on stock they didn't have in their portfolio (stupid for Apple to do that... Apple doesn't do stupid). Yes, those options are worth a lot of money, but Apple has a lot of money, and make more every day. Apple has a lot of employees, and they wouldn't jerk one around like this as it would send ripples through out the organization... Apple needs to keep their people happy.
2nd. The only way to lose those options would be if they had a 5 year vesting, and he was terminated for cause... Not at-will (“business reasons” not connected to his performance,'). At will terminations from an employer side (forced severence) requires all options to vest immediately. Otherwise companies would offer 'A Billion shares' to each employee and cull the herd just before vesting date. So, either someone's lying about the termination status, or the options may not exist on the books ("Steve promised me 3000 shares AND a job for life....")
If the stock was in an employment contract then they have to honor it. The problem with these companies, Apple not the only one out there, many of these companies use every chance to screw the employee as they don't consider the employee rights, just the employer's rights because they figure most average employees not in upper management have a difficult time getting an attorney since in order to take a case to trial, they not only have to pay their bills, but have an extra $250K in their back pocket to pay for legal fees just to keep the case in court because the company will drag out the trail as long as they can. It's really sad companies do this, let alone a wealthy company such as Apple.
It kind of makes me not want to do business with companies that do this, but unfortunately, I don't like switching from mfg to mfg every time i hear this kind of treatment. I think that the people that are involved with this decision making, regardless of their title, should ALL pay out of their pocket for these settlements and the court should slap these people with fines and if the company's legal counsel advised this to the other decision makers that they are disbarred. If the legal counsel advises a corporation to do something illegal against an employee just to save money, then they should not be allowed to practice the law. I know that most employers that practice activities that are against the law, they figure that if they are slapped with fines, etc., that that's the cost of doing business. In my book that's bad business practices and that's grounds for termination and possibly other things against those that try to prevent another from working.
These At Will laws are probably in need of change. I think that companies doing mass layoffs have to clear it through the State before they do it, because laying off employees just to "make more profit" is not a good business practice either.
Someone needs to a 20 lb book called the Golden Rules and smack these people in upper management over the head, so to speak, regarding how to treat employees and customers for that matter.
They also need to get some refresher courses in business ethics and proper management techniques just in case they forgot or never took them in the first place..
Certain hiring/firing practices are a sign of bad management and they take it out on employees and customers as a result..
I am losing respect for many people in upper management, and THAT is a shame. They forgot what it's like having to work to pay bills and hopefully be able to make extra for retirement.
Upper management typically only takes care of others in upper management because they like bullying the little guy around, because THEY ARE afraid of being told they don't know what they are doing. It's the Good Ol Boys club all over again.
Treating people the way they treat people doesn't breed respect or loyalty.
I certainly hope Tim Cook takes care of this situation and doesn't end up being another CEO that needs to leave. It's hard enough getting CEOs that take care of their employees, customers, and do honest ethical business practices.