PrivateTechSharesBad leaver
Also called: bad-leaver clause
In one line
A departing employee who, under the rules, loses favourable treatment of their equity — for example by being dismissed for cause or breaching terms.
In plain English
'Bad leaver' clauses let the company treat your equity harshly if you leave on bad terms — forfeiting unvested, or even vested, shares or forcing a sale back at a low price.
If you were explaining it to a 5-year-old
If you leave the club in a bad way — breaking the rules — you might have to give back your toys, maybe even cheaply.
Why it matters when you sell
Being classed a bad leaver can wipe out equity you expected to sell, so know these clauses before you leave.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.