GoKwik’s ESOP Rulebook and Unacademy’s New CEO: What’s Really at Stake?
GoKwik’s ESOP Handcuffs: When Stock Turns into a Trap Imagine spending years at a company, slogging through late-night deploys, believing that one day your ESOPs will pay off. Then, just as you start considering a move, you find out: if you join a competitor, even two years after leaving, you can lose your unvested and vested-but-unexercised options. No, this isn’t some Silicon Valley horror…
GoKwik recently introduced a controversial rule regarding Employee Stock Ownership Plans (ESOPs), which could potentially penalize employees who switch jobs within a certain timeframe. This rule applies even after employees have vested and vested-but-unexercised options, and it extends to competitors like Razorpay, Shiprocket, CRED, and six others.
Essentially, if an employee leaves GoKwik to join a listed competitor or even advises/invests in them, they could lose their stock earnings. This policy appears designed to restrict employee mobility, despite concerns over its fairness and potential legal challenges. On the other hand, Unacademy recently saw a change in leadership as Gaurav Munjal stepped down as CEO after two months following the acquisition by upGrad.
Munjal will now assume the role of executive chairman, focusing on overseeing upGrad's IPO. This change in leadership comes at a time when Unacademy is struggling with monetization and operational losses since the pandemic ended. The new CEO, Akhilendra Kumar, will steer the company through these challenges within the larger upGrad ecosystem.
Both cases highlight growing pressure on startups, with equity being used as a potential deterrent instead of an incentive, and rapid shifts in leadership amid business model issues.
Written by urgent.news from Dev.to's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
