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Sheshank explains the thinking behind ESOP Value Clarity.
Start with the founder's explanation, then move through the decision framework below. This keeps the article connected to the product instead of feeling like a generic content page.
Article
I am leaving my startup. What happens to my vested options?
Vested count
What you may keep
Deadline
When the choice expires
Cash
What exercise requires
First split
Separate vested from unvested before anything else.
When you leave, the first question is not total granted options. It is how many have vested as of your actual termination date and what the plan says about the remaining unvested portion.
Unvested options are commonly forfeited, but the final answer depends on your grant agreement, plan rules and any special acceleration terms.
Deadline risk
The post-termination exercise window can be the most important line in the document.
Some employees only discover the exercise window after resigning. If the window is short, you may need to quickly decide whether to pay the exercise cost and take private-company share risk.
Before your last working day, ask for the exact number of vested options, strike price, exercise process and deadline in writing.
Missing the exercise window can cause vested options to lapse. Do not rely on memory or informal messages for the deadline.
Decision lens
Exercising after leaving is a cash allocation decision.
The decision is not automatically yes because the options vested. You are deciding whether to spend cash on an illiquid, risky asset connected to a company you no longer work for.
Why this matters to each reader
Employee
Get the final vested count and deadline before your last day.
Founder
Transparent offboarding protects trust even when employees leave.
HR
Make vested options and exercise window part of every exit process.
CA
The leaving date can trigger a compressed tax and cash-planning timeline.
Decision checklist
Confirm termination date used for vesting.
Get vested and unvested counts.
Confirm strike price.
Confirm exercise deadline.
Ask whether partial exercise is allowed.
Review tax and liquidity before paying cash.
Common mistakes
FAQ
Do unvested options continue vesting after I leave?
Usually no, unless your documents provide acceleration or another special treatment. Check the plan and grant terms.
What happens if I do not exercise vested options in time?
They may lapse according to the plan terms. Confirm the deadline directly with the company.
Educational content
This guide explains general equity concepts and is not financial, investment, legal, employment or tax advice. Company plans and individual circumstances differ. Use official documents and appropriate professional advice for material decisions.
Knowledge to modelling
Apply this guide to your own ESOP assumptions.
Use ESOP Value Clarity to connect grant size, vesting, exercise cost, dilution and exit scenarios instead of relying on a headline number from "I am leaving my startup. What happens to my vested options?".
Continue learning
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