I'd like to add the word "can" in there. "Equity grants [can] take months." They shouldn't though. They can take as little time as it takes the president or CEO to hit the "print" button and get out a pen if the rules are laid out clearly and voted on ahead of time by the board.
All three startups I have been involved with have had board-level approval for individual equity grants. I have never seen any real push-back on them, but I have also never heard of the board relinquishing control over something so vital.
The employment contract guarantees the equity subject to board approval. I'm not quite sure why people are making such a big deal out of this.
What you describe is certainly common. I have a different experience and I like what I have seen better.
> The board agrees all new employees get X options with a 1 year cliff and 4 year vesting without additional approval so long as total options granted does not exceed Y.
The board only needs needs to be involved if X or Y need to be changed.
Having the board bother themselves with every little hire is just ridiculous. They have better things to do. Plus if the options are defined on paper the company can't be accused of favoring certain classes of employees differently.
The best option at that point is to quit and make public the breach of contract. Don't do business with unethical people or organizations it's simply not worth your time.
I would be very careful about making the breach of contract public. Companies tend to have better paid lawyers and bigger pockets than individuals. Unless you are in a position where you can't be touched (for instance: because you are broke or in a different jurisdiction) this is a risky strategy.
First sueing an ex-employee is a massive reputation hit.
An employee who fails to receive full compensation can receive free legal help from a range of organizations with very deep pockets. In many situations companies have a significant advantage, but in this case they really don't.
Sure, people and companies may be completely irrational, but competent legal advice will tell them to leave this one alone.
