Then I strike the offending passage out on both copies of the contract, sign and hand it back to them.
Your move.
¯\_(ツ)_/¯
In tech I’ve never even heard a rumor of something like this.
First of all, taking any code with you is theft, and you go to jail, like this poor Goldman Sachs programmer [1]. This will happen even if the code has no alpha.
However, noone can prevent you from taking knowledge (i.e. your memories), so reimplementing alpha elsewhere is fine. Of course, the best alpha is that which cannot simply be replicated, e.g. it depends on proprietary datasets, proprietary hardware (e.g. fast links between exchanges), access to cheap capital, etc.
What hedge funds used to do, is give you lengthy non-competes. 6months for junior staff, 1-2y for traders, 3y+ in case of Renaissance Technologies.
In the US, that's now illegal and un-enforceable. So what hedge funds do now, is lengthy garden(ing) leaves. This means you still work for the company, you still earn a salary, and in some (many? all?) cases also the bonus. But you don't go to the office, you can't access any code, you don't see any trades. The company "moves on" (developes/refines its alpha, including your alpha - alpha you created) and you don't.
These lengthy garden leaves replaced non-competes, so they're now 1y+. AFAIK they are enforceable, just as non-competes while being employed always have been.
[1] https://nypost.com/2018/10/23/ex-goldman-programmer-sentence...
https://www.ftc.gov/news-events/news/press-releases/2024/04/...
I've seen equity clawbacks in employment agreements. Specifically, some of the contracts I've signed have said that if I'm fired for cause (and were a bit more specific, like financial fraud or something) then I'd lose my vested equity. That isn't uncommon, but its not typically used to silence people and is part of the agreement they review and approve of before becoming an employee. It's not a surprise that they learn about as they try to leave.
I'm not surprised that they're rapidly backpedaling.
I guess these agreements mean that the property isn't full unrestricted property of the employee... and therefore income tax isn't payable when they vest.
The tax isn't avoided - it would just be paid when you sell the shares instead - which for most people would be a worse deal because you'll probably sell them at a higher price than the vest price.
> Comp clawbacks are quite common in finance
Never seen anything that says money or equity you've already earned could be clawed back.
Never negotiated on exit.
There was one thing that I cared about (anti-competitive behavior, things could technically be illegal, but what counts is policy so it really depends on what the local authority wants to enforce), so I asked a lawyer, and they said: No way this agreement prevents you from answering that kind of questioning.
OpenAI is different: they don’t grant options, but “Units” that are more like RSUs.
> I have worked for multiple startups (Malwarebytes...
Note the "have worked" and the rather long list of places they've worked. If that list is in chronological order (sure didn't look alphabetical), Malwarebytes doesn't have to be a startup now for it to have been one when GP worked there.
Fuck, I’m old.