You leave your startup (by your choice or theirs). Immediately, a 90-day clock starts on whether you get any of your earned equity.
Now you're faced with a smattering of not great options. Do you outlay cash now to exercise, buying into an uncertain future? Do you save current money but give up future rewards (which, to reiterate, you already worked to earn?)
Feels like I'm grumbling on a loop about this post-termination exercise window issue but the Carta data shows it basically hasn't budged in the last 5 years.
Except - check out that orange bar (beginning of COVID). And the slight dip in recent quarters.
When layoffs are high, somehow startup companies find a way to extend the exercise window for their departing employees. Why does it take a wave of layoffs to make this change?
New founders, give your employees a real opportunity to purchase the options they already earned. 90 days is not enough.
And yes - it's not a simple change! It affects ISOs and NSOs differently, there are complications, I get it. Still worth doing.
#cartadata #equity #exercisewindows #compensation
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. © 2026 Carta. All rights reserved. Reproduction prohibited.
