Module 3 · Chapter 9

The Manager

A manager who pays little for her shares pays the rest with years of work. The agreement makes sure she gives them: her shares vest, and the reason she leaves sets their price.

≈ 11 min read 8-question test

In this chapter

  • How the manager's shares vest over four years
  • Why the reason she leaves sets the price of her shares
  • What she may not do for a year after she goes

9.1Leaver terms in one paragraph

Dr Sayer paid £1 a share for her 10% of the company, where Ferris and A&W paid £100. She pays the rest with her work as managing director, so clause 16 of the SHA says what happens when she stops. Her shares vest over four years, and when she leaves she is either a good leaver or a bad leaver. The other owners then buy her shares at a price that depends on which she is.

Key point

Dr Sayer owns all her shares from the first day. Clause 16 does not decide whether she owns them. It decides the price she is paid when she leaves.

Also in this chapter

  1. Why she owns every share from the start
  2. Vesting: a quarter a year for four years
  3. Good leavers and bad leavers
  4. When resigning stops costing her
  5. The reason for leaving sets the price
  6. Who buys her shares
  7. A sale of the company vests everything
  8. A year without competing
  9. Your job

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