good leaver

Equity Retention

Retaining vested shares ensures departing team members maintain economic participation in future enterprise value growth. When designated a good leaver, an executive retains all vested stock options or shares earned up to the formal separation date. Unvested options typically lapse back to the corporate option pool, while vested holdings remain protected against mandatory discount buybacks.

Board discretion may accelerate vesting under specific termination scenarios, though compulsory acceleration remains rare.

Valuation Standard

Repurchase mechanics for good leaver shares utilize fair market value calculations determined by recent valuation reports. Valuations avoid arbitrary discounts, allowing departing holders to receive market pricing during company buybacks.

Departure Boundary

Status criteria cease applying once formal separation agreements achieve execution and release claims are signed. Post-departure breaches of non-solicitation or confidentiality clauses convert status to bad leaver status under specific contractual conversion provisions.