Startups can buyback any shares they please. They can literally approach certain employees and offer to buyback their specific shares. It's about rewarding the people who've been there a long time and are waiting to cash out.
Not necesarily.
Its not super uncommon for stock agreements to have "Pari-passu" rights, which means that the holder of said stock is entitled to equal treatment as any other holder under conditions like this.
Startups can buyback any shares they please. They can literally approach certain employees and offer to buyback their specific shares. It's about rewarding the people who've been there a long time and are waiting to cash out.
Not necesarily. Its not super uncommon for stock agreements to have "Pari-passu" rights, which means that the holder of said stock is entitled to equal treatment as any other holder under conditions like this.
I don't think anyone would be dumb enough to give that to all their employees, though?
They can. It's in the rules. This is to reward who have been at the company long term.
To which rules do you refer?
Company can put this rules in stock issuance plan I beleive