Expiration of EMI options

JFinLondon

Hi, I was made redundant in June this year and as part of the redundancy package, it was confirmed that I would keep the EMI share options which I was granted upon joining the business as a start up.

What I didn't realise was that these options needed to be exercised within 90 days of leaving, otherwise they would expire. This was not stated anywhere on the redundancy paperwork, although it did reference out to the EMI t&cs. Due to the stresses of being made redundant with a new baby imminent, I must admit that I didn't go back through the t&cs and have now discovered that they have lapsed as I am ~120 days post leaving date.

I contacted my former employers and asked if they could do anything for me and there response was while it was possible, they have chosen not to due to tax implications.

I am looking for some guidance as to whether I have any grounds for appeal and if so, where should I turn?

gm0

Bad miss.  But likely no

Nowhere to go.  Asking employer.  Asking employer harder and louder (more senior). 

Union could advise if in one - more formal than amateur web folk like me - and local context

Finance journalists might like a woe is me watch out for this story.  Though it's an old favourite.
And MD/marketing might like you to go away slightly happier to shutup as a narrative arc in that scenario

It's not consumer finance.  No FCA regulation. No FOS etc. until the shares arrive in a consumer brokerage account.  This is employment contract and the scheme t&c at this point.

After that it's EMI schemes and legal precedents where challenged - so legal consult. Irrelevant unless there are millions at stake.  For 10k.  It's a life lesson not a lawsuit on frivolous grounds - where it was a standard scheme that worked - as designed. And as communicated.  Including the left employment 90 day tidy up clause.  Which is pretty common.

Most EMI schemes are templated and it is *possible* that a bad one has been done, customised or poorly implemented and communicated - amateur hour.  But if they have at some point taken HR advice and left it alone.  They will likely be golden.  And the 90 days exercise was on you legally.  The end.

If you do manage to wheedle a helpful discretionary payment by whatever route they pick as least problematic - it would be exactly that - some money they *choose* to find to be nice to you for old times sake.  

A choice which seems unlikely if redundancy is the order of the day this financial year due to startup cashflow.

The options as configured.  Are gone.  Like a money off voucher after its expiry date.

And paying you differently after they expired gives them a problem with anyone they already or subsequently say "no" sorry they expired unexercised to.  Classic cutoff date problem. 

Many things are wrapped around employment contracts via "discretion" terms - such as bonuses.  Not a right you can sue for.  But a gift to be given or withheld.

You have nothing.  Try anyway.

JFinLondon

gm0 said:

Bad miss.  But likely no

Nowhere to go.  Asking employer.  Asking employer harder and louder (more senior). 

Union could advise if in one - more formal than amateur web folk like me - and local context

Finance journalists might like a woe is me watch out for this story.  Though it's an old favourite.
And MD/marketing might like you to go away slightly happier to shutup as a narrative arc in that scenario

It's not consumer finance.  No FCA regulation. No FOS etc. until the shares arrive in a consumer brokerage account.  This is employment contract and the scheme t&c at this point.

After that it's EMI schemes and legal precedents where challenged - so legal consult. Irrelevant unless there are millions at stake.  For 10k.  It's a life lesson not a lawsuit on frivolous grounds - where it was a standard scheme that worked - as designed. And as communicated.  Including the left employment 90 day tidy up clause.  Which is pretty common.

Most EMI schemes are templated and it is *possible* that a bad one has been done, customised or poorly implemented and communicated - amateur hour.  But if they have at some point taken HR advice and left it alone.  They will likely be golden.  And the 90 days exercise was on you legally.  The end.

If you do manage to wheedle a helpful discretionary payment by whatever route they pick as least problematic - it would be exactly that - some money they *choose* to find to be nice to you for old times sake.  

A choice which seems unlikely if redundancy is the order of the day this financial year due to startup cashflow.

The options as configured.  Are gone.  Like a money off voucher after its expiry date.

And paying you differently after they expired gives them a problem with anyone they already or subsequently say "no" sorry they expired unexercised to.  Classic cutoff date problem. 

Many things are wrapped around employment contracts via "discretion" terms - such as bonuses.  Not a right you can sue for.  But a gift to be given or withheld.

You have nothing.  Try anyway.

As I expected but thank you for the detailed response, it is really appreciated.