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	<title>AllThingsD &#187; RSU</title>
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		<title>Tidbits From the Facebook IPO Filing: I'll Have What SV VCs Marc Andreessen and Jim Breyer Are Having!</title>
		<link>http://allthingsd.com/20120206/tidbits-from-the-facebook-ipo-filing-ill-have-what-sv-vcs-marc-andreessen-and-jim-breyer-are-having/</link>
		<comments>http://allthingsd.com/20120206/tidbits-from-the-facebook-ipo-filing-ill-have-what-sv-vcs-marc-andreessen-and-jim-breyer-are-having/#comments</comments>
		<pubDate>Mon, 06 Feb 2012 21:44:15 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[IPO]]></category>
		<category><![CDATA[James Breyer]]></category>
		<category><![CDATA[Marc Andreessen]]></category>
		<category><![CDATA[Mark Zuckerberg]]></category>
		<category><![CDATA[RSU]]></category>
		<category><![CDATA[stock]]></category>
		<category><![CDATA[venture capitalist]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=171594</guid>
		<description><![CDATA[It's good times for venture capitalists in Silicon Valley, both professionally and personally.]]></description>
			<content:encoded><![CDATA[<p><a href="http://allthingsd.com/?attachment_id=171806" rel="attachment wp-att-171806"><img src="http://allthingsd.com/files/2012/02/220px-Jim_Breyer_Venture_Capitalist-150x150.png" alt="" title="220px-Jim_Breyer_Venture_Capitalist" width="150" height="150" class="alignright size-thumbnail wp-image-171806" /></a><a href="http://allthingsd.com/?attachment_id=171807" rel="attachment wp-att-171807"><img src="http://allthingsd.com/files/2012/02/17168766_XwbD2w-1-150x150.png" alt="" title="17168766_XwbD2w-1" width="150" height="150" class="alignright size-thumbnail wp-image-171807" /></a></p>
<p>Because I am an obessive-compulsive and Facebook is my new target of stalkery, I have re-read its IPO filing from earlier this week about nine times so far.</p>
<p>It&#8217;s chock full of interesting little bits of tasty info about the Silicon Valley social networking giant that I plan to shine a little more light on this week.</p>
<p>First up is not exactly a news flash: Besides graphic artists, VCs also clean up in the public offering docs.</p>
<p>But I am not talking about the variety of venture firms with their fingers in Facebook, which run the gamut from Accel Partners to DST Global and more. </p>
<p>I am talking about individual wins for venture capitalists, most especially Accel&#8217;s Jim Breyer and Marc Andreessen of Andreessen Horowitz. </p>
<p>According to the filing, while Accel holds almost 190 million shares, Breyer himself holds 11.7 million shares personally in the &#8220;James W. Breyer 2005 Trust dated March 25, 2005.&#8221;</p>
<p><a href="http://allthingsd.com/20120206/tidbits-from-the-facebook-ipo-filing-ill-have-what-sv-vcs-marc-andreessen-and-jim-breyer-are-having/facebook-ipo-2/" rel="attachment wp-att-171814"><img src="http://allthingsd.com/files/2012/02/facebook-IPO1-380x257.png" alt="" title="facebook-IPO" width="380" height="257" class="alignleft size-medium wp-image-171814" /></a></p>
<p>Depending on what Facebook&#8217;s valuation turns out to be, based on current estimates, that hovers around $300 million. One caveat, according to the filing, is that 10.4 million of those shares &#8212; which are currently Class B stock and will be converted to Class A stock &#8212; are &#8220;subject to a voting agreement in favor of Mr. Zuckerberg.&#8221; That would be CEO and co-founder Mark Zuckerberg, who controls the company via such arrangements.</p>
<p>Not so the shares of super-VC Marc Andreessen, whose firm holds 3.6 million shares. But he himself has 5.2 million restricted stock units, presumably for board service and other advisory duties to Facebook. That&#8217;s a possible $125 million or more windfall.</p>
<p>Other board members have also gotten RSUs, but not in that large an amount. Washington Post head Don Graham holds one million of them, while Washington, D.C. political vet Erskine Bowles and Netflix&#8217;s Reed Hastings each clock in at only 20,000 each.</p>
<p>That&#8217;s a big delta, of course, which means it&#8217;s good times for VCs in Silicon Valley, both professionally and personally. </p>
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		<title>Hasta La Vista, Stock Options: Here's the Zynga SEC Filing</title>
		<link>http://allthingsd.com/20111117/hasta-la-vista-stock-options-heres-the-zynga-sec-filing/</link>
		<comments>http://allthingsd.com/20111117/hasta-la-vista-stock-options-heres-the-zynga-sec-filing/#comments</comments>
		<pubDate>Thu, 17 Nov 2011 18:46:30 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[amendment]]></category>
		<category><![CDATA[board]]></category>
		<category><![CDATA[employee]]></category>
		<category><![CDATA[filing]]></category>
		<category><![CDATA[gaming]]></category>
		<category><![CDATA[Industry Moves]]></category>
		<category><![CDATA[letter]]></category>
		<category><![CDATA[operational]]></category>
		<category><![CDATA[options]]></category>
		<category><![CDATA[Owen Van Natta]]></category>
		<category><![CDATA[restricted stock unit]]></category>
		<category><![CDATA[revenue]]></category>
		<category><![CDATA[RSU]]></category>
		<category><![CDATA[S-1]]></category>
		<category><![CDATA[Securities and Exchange Commission]]></category>
		<category><![CDATA[shares]]></category>
		<category><![CDATA[stock]]></category>
		<category><![CDATA[transition]]></category>
		<category><![CDATA[vested]]></category>
		<category><![CDATA[ZSU]]></category>
		<category><![CDATA[Zynga]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=145289</guid>
		<description><![CDATA[Read on about the deets of the doings at the social gaming site.]]></description>
			<content:encoded><![CDATA[<p><a href="http://allthingsd.com/20111117/hasta-la-vista-stock-options-heres-the-zynga-sec-filing/zynga_logo/" rel="attachment wp-att-145343"><img src="http://allthingsd.com/files/2011/11/zynga_logo.gif" alt="" title="zynga_logo" width="380" height="285" class="alignright size-full wp-image-145343" /></a></p>
<p>As I <a href="http://allthingsd.com/20111117/exclusive-zyngas-van-natta-moves-to-strategic-advisor-feld-off-board-paul-in/">reported earlier today</a>, social gaming giant Zynga has posted <a href="http://www.sec.gov/Archives/edgar/data/1439404/000119312511315435/d198836ds1a.htm">another filing</a> with the Securities and Exchange Commission. </p>
<p>That includes Chief Business Officer Owen Van Natta stepping out of an operational role and forfeiting shares in the process. To be exact: That will be 4.6 million options and close to 800,000 restricted stock units. </p>
<p>All of the details are in his transition letter in Zynga&#8217;s massive new S-1, which is in exhibit 10.12 to the amendment filing.</p>
<p>I would start at page 119, but to summarize: Van Natta is keeping all the vested stock options and restricted stock units, currently more than two million stock options that are already vested and another 936,000 RSUs (Zynga calls them ZSUs) already vested. He also has another 750,000 shares that will continue to vest due to his board position.</p>
<p>But, because he is no longer an employee, he is forfeiting all his unvested employee stock options and RSUs. Although it does seem like a lot, this is typical in such cases.</p>
<p>I need to go to lunch, so just read it for yourself:</p>
<p><font size="2"><a href="http://www.docstoc.com/docs/103613927/ZYNGAINC-20111117-S1A-0">ZYNGAINC-20111117-S1A-0</a></font><br/><object id="_ds_103613927" name="_ds_103613927" width="630" height="550" type="application/x-shockwave-flash" data="http://viewer.docstoc.com/"><param name="FlashVars" value="doc_id=103613927&#038;mem_id=1512683&#038;doc_type=pdf&#038;fullscreen=0&#038;allowdownload=1" /><param name="movie" value="http://viewer.docstoc.com/"/><param name="allowScriptAccess" value="always" /><param name="allowFullScreen" value="true" /></object><script type="text/javascript">var docstoc_docid="103613927";var docstoc_title="ZYNGAINC-20111117-S1A-0";var docstoc_urltitle="ZYNGAINC-20111117-S1A-0";</script><script type="text/javascript" src="http://i.docstoccdn.com/js/check-flash.js"></script></p>
]]></content:encoded>
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		<title>More on Retention Packages and Enhanced Severance at Yahoo</title>
		<link>http://allthingsd.com/20080219/more-on-retention-packages-and-enhanced-severance-at-yahoo/</link>
		<comments>http://allthingsd.com/20080219/more-on-retention-packages-and-enhanced-severance-at-yahoo/#comments</comments>
		<pubDate>Tue, 19 Feb 2008 21:19:12 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[BoomTown]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[Internet]]></category>
		<category><![CDATA[Kara Swisher]]></category>
		<category><![CDATA[Kevin Delaney]]></category>
		<category><![CDATA[Microsoft]]></category>
		<category><![CDATA[options]]></category>
		<category><![CDATA[RSU]]></category>
		<category><![CDATA[severance]]></category>
		<category><![CDATA[Wall Street Journal]]></category>
		<category><![CDATA[Yahoo]]></category>

		<guid isPermaLink="false">http://kara.allthingsd.com/20080219/more-on-retention-packages-and-enhanced-severance-at-yahoo/</guid>
		<description><![CDATA[If you are feeling a little déjà vu about the news BoomTown broke this morning about new retention packages and enhanced severance benefits for Yahoos, in order to keep them from bolting in the face of Microsoft&#8217;s unsolicited bid (and to give them a payout in case it works), you are not wrong. According to [...]]]></description>
			<content:encoded><![CDATA[<p>If you are feeling a little déjà vu about the <a href="http://kara.allthingsd.com/20080219/retaining-yahoo-talent-enhanced-severance/">news BoomTown broke this morning about new retention packages and enhanced severance benefits for Yahoos</a>, in order to keep them from bolting in the face of Microsoft&#8217;s unsolicited bid (and to give them a payout in case it works), you are not wrong.</p>
<p><img src='http://kara.allthingsd.com/files/2008/02/cyo2007-lg.jpg' alt='options' /></p>
<p>According to several execs who contacted me today, this is what Yahoo (YHOO) did in late 2006, when the troubled Internet portal was starting to suffer from drift and its stock was struggling. The solution was &#8220;Project Engage,&#8221; which was a combination of granting options and restricted stocks units (RSUs).</p>
<p>At the time, employees were given two of each kind, with the stock options and one RSU grant having a longer vesting timeframe (typically several years). The other RSU grant, which is essentially outright grant of stock, actually just vested on Feb. 2, which might explain some recent departures of top talent to new jobs.</p>
<p>Said one exec: &#8220;Everyone was just biding their time for the RSU to vest and the Microsoft bid just gives everyone an excuse to leave, because it is hard to imagine wanting to work for Yahoo if it gets forcibly taken over.&#8221;</p>
<p>The new Yahoo retention packages would again presumably help hold onto talent, if the deal does not go through, while the enhanced severance would give them a comfy escape route if Microsoft (MSFT) takes over.</p>
<p>As an added benefit to Yahoo, which is seeking to escape Microsoft&#8217;s embrace, it will make acquiring Yahoo even more pricey for Microsoft. In addition, if it wins Yahoo, the software giant will still have to hand out even more retention benefits to stave off an exodus.</p>
<p>In a follow-up to BoomTown&#8217;s story, <a href="http://online.wsj.com/article/SB120345376352977779.html?mod=technology_main_whats_news">Kevin Delaney of The Wall Street Journal has more details of the severance plan</a>, which will cover all employees even if they are laid off due to a change of control at the company.</p>
<p>Yahoo CEO Jerry Yang alerted employees to the severance benefits plan in an email Friday, promising specific details would be available to staff today, the story said.</p>
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		<title>Of Facebook Financing Foibles and Fumbles</title>
		<link>http://allthingsd.com/20071210/of-facebook-financing-foibles-and-fumbles/</link>
		<comments>http://allthingsd.com/20071210/of-facebook-financing-foibles-and-fumbles/#comments</comments>
		<pubDate>Mon, 10 Dec 2007 09:42:01 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Social]]></category>
		<category><![CDATA[BoomTown]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[Internet]]></category>
		<category><![CDATA[Kara Swisher]]></category>
		<category><![CDATA[Li Ka-shing]]></category>
		<category><![CDATA[Mark Zuckerberg]]></category>
		<category><![CDATA[Microsoft]]></category>
		<category><![CDATA[Owen Thomas]]></category>
		<category><![CDATA[RSU]]></category>
		<category><![CDATA[SEC]]></category>
		<category><![CDATA[shareholder]]></category>
		<category><![CDATA[social networking]]></category>
		<category><![CDATA[stock]]></category>
		<category><![CDATA[Valleywag]]></category>

		<guid isPermaLink="false">http://kara.allthingsd.com/20071210/of-facebook-financing-foibles-and-fumbles/</guid>
		<description><![CDATA[Let&#8217;s be clear on one thing: We won&#8217;t be getting any financial information out of the company about Facebook&#8217;s performance or the slate of its shareholders until it&#8217;s good and ready to hand it over. That&#8217;s because, although it has been widely reported, the hot social network will not fall under the Securities and Exchange [...]]]></description>
			<content:encoded><![CDATA[<p>Let&#8217;s be clear on one thing: We won&#8217;t be getting any financial information out of the company about Facebook&#8217;s performance or the slate of its shareholders until it&#8217;s good and ready to hand it over.</p>
<p>That&#8217;s because, although it has been widely reported, the hot social network will not fall under the Securities and Exchange Commission&#8217;s old &#8220;500 shareholder rule,&#8221; which would have forced it to report such information when the number of shareholders, including those holding just stock options, reached 500.</p>
<p><img src='http://kara.allthingsd.com/files/2007/12/symbols-money-2.jpg' alt='money' class='centered'/></p>
<p>While companies like Google got caught in that net several years ago, the SEC actually recently changed that rule to exempt those just holding options, which the vast majority of Facebook&#8217;s growing legion of employees (about 400) have been given.</p>
<p>In fact, said many sources, Facebook only has several dozen individual shareholders who actually own stock and that number is unlikely to rise in the future.</p>
<p><span id="more-67473"></span></p>
<p>That&#8217;s because new employees, for example, since the start-up&#8217;s recent $300-million financing that put its valuation at $15 billion, will be getting mostly &#8220;RSUs,&#8221; or restricted stock units&#8211;grants of stock valued in terms of company stock, which are not issued until later.</p>
<p>These units are essentially a promise that employees will receive stock in the future, but frees them from vexing tax problems such as alternative minimum tax issues.</p>
<p>That also means few will be able to sell any Facebook stock until there is an actual liquidation event, such as an IPO, which company investors like Peter Thiel of the Founders Fund have said would not occur until at least 2009.</p>
<p>Until then, don&#8217;t expect much selling from major owners, such as CEO and Founder Mark Zuckerberg, who owns 20% of the company outright and has options representing another 7%.</p>
<p>While it&#8217;s a good story to imagine them trying to hedge their bets on the future of Facebook, many sources have told me neither Zuckerberg nor other top execs have done so.</p>
<p><img src='http://kara.allthingsd.com/files/2007/12/owendunce.jpg' alt='owenthomas' class='alignleft'/></p>
<p>So <a href="http://valleywag.com/tech/followup/facebook-founder-faces-shareholder-revolt-331633.php">Valleywag&#8217;s Owen Thomas (pictured here in this lovely self-portrait) was right to retract his story</a> over the weekend about Zuckerberg selling $40 million worth of his own shares in the massive financing the company recently got from Microsoft and Asian billionaire Li Ka-sing.</p>
<p>I was in the unusual position of getting the story sent to me by Thomas on my Blackberry Friday night, while at a holiday party that Zuckerberg was also attending.</p>
<p>So what did I do? Well, shove the device in Zuckerberg&#8217;s face, of course!</p>
<p>Zuckerberg took a look at the story and quickly denied cashing out in any way, saying to me: &#8220;Well, that&#8217;s just not true at all.&#8221;</p>
<p>In yet another bizarre Yuletide twist, I was headed to the Valleywag party right after that, so I told Owen&#8211;who was looking dapper in tux and red shades&#8211;that reaction (well, I kind of yelled it at him, to be honest, starting with a festive &#8220;Oops, you&#8217;re wrong!&#8221;).</p>
<p>In other words, it was too good to be true. And, as readers of this column know, so will Facebook&#8217;s valuation be until it garners those hoped-for advertising revenues to back up the big numbers.</p>
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