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Soon Free to Sell, Few Snap Employees Have Stock Profits

Source: Yahoo Finance

Many early Snap shareholders were freed to sell stock starting Monday, but judging by the fact that the stock barely moved, few did. As the shares have fallen 20% since the IPO, many may be waiting for an upturn.

That particularly applies to employees, who are still blocked from selling due to rules around next week’s earnings result. Only a small group of about 100 current and former Snap employees have profited, at least on paper, from their stock grants, according to an analysis of public filings and internal documents obtained by The Information. The rest, including all employees who joined after 2015, have seen the value of their pre-IPO stock awards drop in value. (See above chart.) For those people, waiting for the stock to rally might make sense. Snap last reported 1,859 employees as of Dec. 31.

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To count early employee stock awards, The Information counted all outstanding and unvested stock options and restricted stock units as of Jan. 1, 2015, in addition to all exercised stock options listed on internal documents as of late 2014. We excluded stock held by founders. For the second group, we counted all stock options and restricted stock units granted from 2015 until the IPO in early 2017. About 8% of stock awards in the two groups have been forfeited, however, and some of the awards remain unvested. A small number of stock awards went to non-employees such as board members.

—Tom Dotan contributed to this article.

Ian McCullough commented on this article.
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