Stock options after a layoff
A termination starts a clock. Know the deadlines before you sign the separation agreement.
What you keep
Vested options survive; unvested options and unvested RSUs are normally forfeited on the termination date, subject to any acceleration in your grant.
The exercise window
Typically 90 days for vested options, sometimes 12 months for disability or death. Extended windows beyond 90 days convert ISOs to NSOs, changing the tax treatment.
Negotiation points
Ask for an extended exercise window, continued vesting during severance, or a company buyback. These requests are frequently granted and rarely offered unprompted.
Educational content, not tax advice. Your outcome depends on your grant documents, income and state. Equity Tax Engine models your actual position — join the waitlist.